2025 (12) TMI 698

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....e Hon'ble Supreme Court in case of Ananda Social and Educational Trust Vs. Commissioner of Income Tax and Anr. Reported in (2020) 17 SCC 254 as well as the case of Commissioner of Income Tax (Exemptions) Vs. International Health Care Education and Research Institute reported in (2025) SCC Online SC 607. 2. In the present Tax Appeal, the appellant department has assailed the Judgment and Order dated 22.12.2011 passed by the Income Tax Appellate Tribunal, Rajkot in ITA No. 368/RJT/2011. 3. Pursuant to the order dated 11.12.2012, the Division Bench of this Court framed the following substantial question of law:- "The Appeal is admitted for consideration of the following substantial question of law: Whether the Appellate....

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.... Bags to the poor students and have donated Rs. 21,000/- to Sargam Club. Learned Senior Standing Counsel Mr. Yajnik has submitted that this is an afterthought as the same has taken place on 7.6.2011 when the Ward Inspector visited the Trust's Office and found that no activities are still carried out by the Trust and these amounts are also not appearing in the bank account. 5. At the time of filing the present Tax Appeal and framing of the substantial question of law, the appellant Department has placed reliance on the Judgment passed by the Kerala High Court in the case of Self Employers Service Society Vs. CIT reported in 247 ITR 18 (Kerala) and the Judgment passed by Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda ....

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....registration if the activities are found contarry to the objects of the rust. 20. In the present case, what has been found is that the trust has not spent any amount of its income for charitable purposes. This is a case of not carrying out the objects of the trust and not(sic the case of ) carrying on activities contrary to its object. These circumstances may arise for any reasons including not finding suitable circumstances for carrying on activities. Undoubtedly the inaction in carrying out charitable purposes might also become actionable depending on other circumstances, but we are not concerned with such a case here." 7. In the present case, it is not in dispute and has been precisely observed by the Tribunal that the Trust ....

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....the genuineness of the activities, which in my view is nor correct. When there are no activities at all, then there is no question of holding that the activities were not genuine. The genuineness of the activities only can be verified when there is some activity." 8. Reliance is placed on the Judgment passed by the Hon'ble Supreme Court in the case of International Health Care Education (supra), wherein it has been held thus, "14. We may agree to a certain extent with the learned Additional Solicitor General that the very purpose for any assessee to seek registration under Section 12AA of the Act is to claim exemption under Sections 10 and 11, respectively, of the Act as the case may be. Therefore, before seeking registration, i....