G.D. Kavita Singla Charitable Trust, Amritsar. V. The Commissioner of Income tax, Amritsar.

ITA 594/ASR/2013

• Counselvise Citation: 59420914 RSA 2013
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 30-09-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S K BANSAL ADAVOCATE
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 594 (ASR)/2013 ASSESSMENT YEAR: NIL PAN: AABTG9082D G.D. KAVITA SINGLA CHARITABLE VS. C.I.T.-II, TRUST, 10-A, RANI KA BAGH, AMRITSAR AMRITSAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. S.K. BANSAL, ADAVOCATE RESPONDENT BY: SH. MAHAVIR SINGH, SR.D.R. DATE OF HEARING: 20.01.2014 DATE OF PRONOUNCEMENT: 03.02.2014 ORDER PER BENCH 1. THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 24/25 TH SEPTEMBER, 2013 PASSED BY LEARNED CIT-II, AMRITSAR , UNDER SECTION 12AA(1)(B)(I) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE FILED ITS APPLICATION UNDER SECTION 12A(1) FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT ON 26.03.2013. THE APPLICATION WAS ACCOMPANIED WITH PHOTOCOPY OF TRUST DEED DATED 2 I.T.A. NO. 594 (ASR)/2013 25.12.2012, CONTAINING THE OBJECTIVES AND FUNCTIONS OF THE SOCIETY. THE TRUST DEED HAS BEEN REGISTERED WITH THE SUB-REGISTR AR-CUM-TEHSILDAR, AMRITSAR VIDE VASIKA NO. 3336 DATED 14.03.2013. LEA RNED CIT-II, AMRITSAR, CALLED A REPORT FROM THE DEPUTY COMMISSIO N OF INCOME TAX, CIRCLE-V, AMRITSAR, WHO WAS THE JURISDICTIONAL OFFI CER AND HE SUBMITTED HIS REPORT ON 30.08.2013. BOTH THE ASSESSING OFFICE R AND THE ADDITIONAL COMMISSIONER HAD NOT RECOMMENDED THE REGISTRATION T O THE ASSESSEE UNDER SECTION 12AA OF THE ACT. 3. LEARNED CIT-II, AMRITSAR, FIXED THE CASE OF THE ASSESSEE-TRUST FOR 12.09.2013, GIVING AN OPPORTUNITY TO THE APPLIC ANT-TRUST TO REPRESENT THE CASE. THE AUTHORIZED REPRESENTATIVE OF THE ASSE SSEE APPEARED BEFORE LEARNED CIT-II, AMRITSAR, AND THE CASE OF THE ASSES SEE-TRUST WAS DISCUSSED IN DETAIL WITH THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. LEARNED CIT- II, AMRITSAR, AFTER PERUSING THE DOCUMENTARY EVIDEN CE FILED BY THE ASSESSEE AS WELL AS THE REPORT OF THE DEPUTY COMMIS SIONER OF INCOME TAX, CIRCLE-V, AMRITSAR, AND COMMENTS OF THE RANGE HEAD, CONCLUDED THAT ASSESSEE-TRUST HAS BEEN CONSTITUTED BY FOUR ME MBERS WHO ARE CLOSE RELATIVES. LEARNED CIT-II, AMRITSAR, WAS ALSO OF TH E VIEW THAT THE ASSESSEE-TRUST CAME INTO EXISTENCE ON 25.12.2012 BU T IT HAD DONE A VERY 3 I.T.A. NO. 594 (ASR)/2013 LITTLE ACTIVITIES BY SPENDING A SUM OR RS. 2530/- F OR PROVIDING BANDAGES/ DETTOL TO SOME LEPROSY ASHRAM AND IT HAD DISTRIBUTE D SOME NOTEBOOKS WORTH RS. 2000/- IN SOME SCHOOL UPTO 31.03.2013. SI MILARLY, IT HAS SHOWN PAYMENTS OF RS. 2100/- EACH TO TWO SCHOOLS DURING T HE FINANCIAL YEAR 2013-14. LEARNED CIT-II, AMRITSAR, WAS ALSO OF THE VIEW THAT THESE EXPENDITURES HAVE BEEN INCURRED BY THE ASSESSEE IN THE MONTH OF AUGUST, 2013. THIS STATE OF AFFAIR OF THE TRUST SHOWS THAT ITS ACTIVITIES ARE VERY LIMITED AS SEEN IN THE BACKDROP OF ITS AIMS AND OBJ ECTIVES. LEARNED CIT- II, AMRITSAR, IN THE IMPUGNED ORDER, AFTER EXAMININ G THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE ALONG WITH THE REPOR T OF THE ASSESSING OFFICER, HAS ALSO HELD THAT AN INSPECTOR WAS DEPUTE D TO VERIFY THE ACTIVITIES OF THE TRUST AT THE ADDRESS GIVEN IN THE APPLICATION AND HE HAS REPORTED THAT THE TRUST DID NOT HAVE ANY SEPARATE O FFICE OR AREA OF ITS ACTIVITY AND ITS EXISTENCE HAS BEEN SHOWN FROM THE RESIDENTIAL PREMISES OF THE TRUSTEE. AND FINALLY LEARNED CIT-II, AMRITSAR, HAS HELD THAT A PERUSAL OF THE TRUST DEED REVEALS THAT THE TRUST IS CONSTIT UTED BY THE FAMILY MEMBERS OF THE FOUNDER OF THE TRUST, SH. R.D. SINGL A. THEREFORE, THE CONTROL OF THE TRUST IS VESTED WITHIN THE FAMILY IT SELF AND HE REJECTED THE APPLICATION FILED BY THE SOCIETY ON 26.03.2013 AND REFUSED TO GRANT 4 I.T.A. NO. 594 (ASR)/2013 REGISTRATION TO THE ASSESSEE-TRUST UNDER SECTION 12 AA OF THE ACT BY PASSING THE IMPUGNED ORDER DATED 24/25 TH SEPTEMBER, 2013. BEING AGGRIEVED WITH THE SAME, THE ASSESSEE FILED THE PRE SENT APPEAL. 4. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THAT THE LEARNED CIT-II, AMRITSAR, HAS IGNORED THE JUDGMENTS OF HON'BLE HIGH COURTS, IN WHICH THE HON'BLE HIGH COUR T HAS HELD THAT THE COMMISSIONER OF INCOME TAX HAS TO SEE THE OBJECTIVE S OF THE TRUST AND NOT ITS APPLICATION OF INCOME AND HAS WRONGLY REFUS ED REGISTRATION TO THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT BY PAS SING THE IMPUGNED ORDER. HE FURTHER STATED THAT LEARNED CIT-II, AMRIT SAR, HAS NOT POINTED OUT THAT ANY BENEFICIARY HAS NOT TAKEN ANY ADVANTAGE DI RECTLY OR INDIRECTLY OF THE TRUST FUND OR TRUST INCOME AND THE LEARNED CIT HAS NOT APPRECIATED THE FACT THAT ALL THE DONORS AND MEMBERS OF THE TRUST W HO CONTRIBUTED RS. 4 LAKHS WERE THROUGH P/A CHEQUE OR NOT IN CASH AND AR E INCOME TAX PAYEE. FINALLY, HE STATED THAT THE TRUST IS NOT RUNNING AN Y HOSPITAL OR SCHOOL WHERE HUGE SPACE IS REQUIRED, BUT IT IS DISTRIBUTIN G MEDICINES, SCHOOL BOOKS, CONTRIBUTION TO PRIME MINISTER RELIEF FUND, RASHAN TO THE WIDOWS, MARRIAGE OR RE-MARRIAGE OF POOR GIRLS OR WI DOWS AND CONTRIBUTION TO BLIND SCHOOLS ETC, WHERE ALL THE PA YMENTS ARE MADE BY 5 I.T.A. NO. 594 (ASR)/2013 CHEQUE AND DOES NOT REQUIRED ANY SEPARATE BUILDING. THEREFORE, THE IMPUGNED ORDER PASSED BY LEARNED CIT-II, AMRITSAR, IS AGAINST THE LAW AND FACTS AND AGAINST THE EVIDENCE PRODUCED BY THE ASSESSEE AND THE SAME DESERVES TO BE CANCELLED. 5. LEARNED DR CONTROVERTED THE ARGUMENT ADVANCED BY LEARNED COUNSEL FOR THE ASSESSEE AND STATED THAT LEARNED CI T-II, AMRITSAR, HAS PASSED A WELL REASONED ORDER ON THE BASIS OF DOCUME NTARY EVIDENCE FILED BY THE ASSESSEE AS WELL AS THE REPORT OF THE ASSESS ING OFFICER WHICH ARE ITSELF SPEAKING ONE AND HE RELIED UPON THE IMPUGNED ORDER. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US, ESPECIALLY THE ORDER PASSED BY L EARNED CIT-II, AMRITSAR, ALONG WITH THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE IN THE SHAPE OF PAPER BOOK CONTAINING PAGES FROM 1 TO 41, IN WHICH HE HAS ATTACHED COPY OF TRUST DEED AND COPY OF ORDERS OF S OME HON'BLE HIGH COURTS ALONG WITH SOME BILLS OF EXPENDITURE. 7. WE HAVE THOROUGHLY EXAMINED ALL THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE ALONG WITH THE PROVISION OF S ECTION 12AA OF THE ACT, ESPECIALLY THE COPY OF TRUST DEED OF THE ASSESSEE-T RUST FILED BEFORE US. FOR 6 I.T.A. NO. 594 (ASR)/2013 THE SAKE OF CONVENIENCE, THE RELEVANT PORTION OF TH E TRUST DEED IS REPRODUCED AS UNDER: THIS TRUST DEED IS MADE THIS 25 TH DAY OF DECEMBER, 2012 BETWEEN : 1. R.D. SINGLA M. PHARMA, S/O SH. DES RAJ SINGLA, AGED ABOUT 72 YEARS, PERMANENT RESIDENT OF 10-A, RANI KA BAGH, AMRITSAR ( HEREINAFTER CALLED SETTLER, WHICH EXPRESSION SHALL UNLESS REPUGNANT TO THE CONTEXT OR MEANING THEREOF, INCLUDE HIS HEIRS, EXECUTORS AND ADMINISTRATOR) OF THE FIRST PART: AND 2(I) R.D. SINGH M. PHARMA, S/O SH. DES RAJ SINGLA, AGED ABOUT 72 YEARS, PERMANENT RESIDENT OF 10-A, RANI KA BAGH, AMRITSAR (II) BIKRAM SINGLA B. ENGG. S/O SH. R.D. SINGLA, AGED ABOUT 42 YEARS, PERMANENT RESIDENT OF 10-A, RANI KA BAGH, AMRITSAR (III) MRS. SHILPA SINGLA, B.SC., W/O. SH. BIKRAM SINGLA, AGE ABOUT 37 YEARS, PERMANENT RESIDENT OF 10-A, RANI KA BAGH, AMRITSAR (IV) MRS. SONA GOYAL B.SC. D/O R.D. SINGLA, W/O R.D. GOYAL, AGED ABOUT 43 YEARS, PERMANENT RESIDENT OF PEERA WALA GATE, SUNAM PUNJAB . ( ALL PERMANENT RESIDENT OF PUNJAB HEREINAFTER CALLED THE TRUSTEES WHICH EXPRESSION SHALL UNLESS REPUGNANT TO THE CONT EXT OR THE MEANING THEREOF INCLUDE THE SURVIVOR OR SURVIVORS O F THEM AND THE HEIRS, EXECUTORS OF ADMINISTRATORS OF THE LAST SURVIVOR AN D THE TRUSTEES FOR THE TIME BEING OF THE TRUST HEREBY DECLARE) OF THE OTHER PART . 7 I.T.A. NO. 594 (ASR)/2013 WHEREAS THE SETTLED IS DESIROUS OF SETTLING UPON TRUST FOR PUBLIC CHARITABLE PURPOSES, AN AMOUNT OF RS. 1,00,000/- (R S. ONE LAC ONLY) CONTRIBUTION AS UNDER: CHEQUE NO. 624671 ON PUNJAB NATIONAL BANK, AMRITSAR CANTT (PB.)- 143 001 DATED 25.12.12 RS. 1,00,000/- AND WHEREAS THE SETTLER HAS HANDED OVER THE SAID CHEQUE OF RS. 1 LAC BEARING NO. 624671 TO THE THREE TRUSTEES AS MEN TIONED ABOVE. AND WHEREAS ALL THE THREE TRUSTEES ALONG WITH SETTLER HAVE AGREED TO BECOME THE FIRST TRUSTEES OF THESE PRESEN TS AS TESTIFIED BY THEIR BEING PARTIES TO AND EXECUTE THESE PRESENTS. NOW THIS DEED OF TRUST WITNESSETH AS UNDER: 1. THAT IN PURSUANCE OF THE SAID DESIRE AND TO AFF ECT TO THE SAID INTENTIONS THE SETTLER HAS BEFORE THE EXECUTION OF THESE PRESENTS HANDED OVER TO THE TRUSTEES THE SAID P/A CHEQUE OF RS. 1 L AC TO HAVE AND TO HOLD THE SAME UPON TRUST AND THE TRUSTEE DO AND EAC H OF THEM BOTH BY THESE PRESENTS, DECLARED THAT THEY, THE TRUSTEES SHALL HOLD AND STAND POSSESSED OF THE SAID AMOUNT OF RS. 1 LAC. 8 I.T.A. NO. 594 (ASR)/2013 2. IF ANY DONATIONS OR CONTRIBUTIONS RECEIVED BY THEM SHALL BE DEPOSITED IN THE BANK. THE TRUSTEES SHALL DEPOSIT T HE TRUST FUND WITH INDIAN SCHEDULED BANK ONLY. 3. THE TRUST HEREBY CREATED SHALL BE STYLED AS M/ S G.D. KAVITA SINGLA CHARITABLE TRUST. 4. THE TRUSTEES SHALL HOLD AND STAND POSSESSED OF THE SAID TRUST FUNDS UPON, THE TRUST TO RECEIVE THE INTEREST, DIVI DENDS, RENTS PROFITS AND OTHER INCOME THEREOF AND THEREON AND TO APPLY THE SAME AFTER MEETING THE EXPENSES/OUT GOINGS, OF THE TRUST SUBJECT TO THESE PRESENTS AS MENTIONED HEREINAFTER IN THIS DEED. THE TRUSTEES MAY AT THEIR DISCRETION APPLY THE WHOLE OR ANY PART OR PARTS OF THE CORPUS OF THE TRU ST FUND FOR THE OBJECTS OF THE TRUST. MAIN OBJECTS: I. THE OBJECTS OF THE TRUST IS TO UPLIFT THE POOR SECTION OF INDIANS. II. TO CONTRIBUTE FOR THE MARRIAGE OF INDIAN POOR GIRLS OR RE- MARRIAGE OF WIDOWS (OR CONTRIBUTION TO THE MASS-MAR RIAGES OF THE INDIAN POOR GIRLS OF ALL SECTIONS OF SOCIETY). 9 I.T.A. NO. 594 (ASR)/2013 III. TO PROVIDE DRY RATION TO THE POOR SECTION OF THE SOCIETY ESPECIALLY THE WOMENHOOD. IV. TO PROVIDE FOR ANY OTHER CHARITABLE PURPOSE OR FOR FEEDING OF POOR, BLIND, DEAF, DUMB, ORPHANS, WIDOWS AS THE TRU STEES SHALL IN THEIR ABSOLUTE DISCRETION THINK FIT FROM TIME TO TIME. V. TO PROVIDE ANY MEDICAL RELIEF BY OPENING HOSPI TALS, NURSING HOMES, DISPENSARIES OF GIVING DONATIONS TO SUCH INS TITUTIONS AND FOR RESEARCH WORK AND TO GIVE, SCHOLARSHIPS (NON-REFUND ABLE) FOR IMPARTING MEDICAL EDUCATION OF ALL SYSTEMS OF MEDICINES. VI. TO ALLOW SCHOLARSHIPS TO POOR STUDENTS, UNIVE RSITY EXAMINATION FEES, SCHOOL/COLLEGE FEE, NECESSARY BOOKS AND SCHOO L/COLLEGE PRESCRIBED UNIFORM. VII. TO PROVIDE EDUCATION, LIBERAL, SCIENTIFIC OR TECHNICAL, COMPUTER ETC. AND FOR THAT PURPOSE TO BUILD SCHOOL, START IN STITUTIONS AND TO PROVIDE STIPENDS, SCHOLARSHIP (NON-REFUNDABLE) FOR THE POOR S. VIII. TO PROVIDE VOCATIONAL COURSES FOR ALL SECTIO N OF GIRLS LIKE THAT FASHION DESIGNING, EMBROIDERY, KNITTING, STITCHING, BEAUTY PARLOR COURSES AND TO PROVIDE THEM ALL FACILITIES FOR SUCH COURSES. 10 I.T.A. NO. 594 (ASR)/2013 IX. TO CONTRIBUTE OR DONATE TO CHILDRENS HOME RU N BY ANY CHARITABLE INSTITUTIONS. X. TO OPEN OR TO RUN, MAINTAIN HOMES FOR THE SENI OR CITIZENS, WINDOWS, ORPHANS. XI. TOR RUN OR MAINTAIN OR CONTRIBUTE FOR THE YOG IC EXERCISE CLASSES AS WELL AS MEDITATION CLASSES FOR ALL. XII. TO RUN, OR MAINTAIN OR CONTRIBUTE FOR PHYSIOT HERAPY CENTRE IN AMRITSAR OR ANYWHERE IN INDIAN AS THE CASE MAY BE. XIII TO RUN, MAINTAIN, OR CONTRIBUTE FOR ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. XIV. TO PURCHASE ANY LAND AND/OR BUILDING OR TO TAK E ON LEASE OR TO CONSTRUCT ANY BUILDING ON ANY FREE HOLD OR LEASE HO LD LAND, ANY WHEREIN INDIAN FOR RESTING PLACES FOR THE BENEFITS OF THE P OOR PEOPLE AND FURNISHING THE SAME FOR THE PURPOSE. 8. THE RELEVANT PROVISION FOR REGISTRATION OF THE T RUST OR INSTITUTION I.E. SECTION 12AA OF THE ACT, ARE REPRODUCED AS UND ER: PROCEDURE FOR REGISTRATION 12AA. 11 I.T.A. NO. 594 (ASR)/2013 (1) THE COMMISSIONER, ON RECEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR INSTITUTION MADE UNDER CLAUSE(A) OR CLAUSE [OR CLAUSE (AA) OF SECTION (1)] OF SECTION 12A, SHALL (A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRU ST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATI SFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTI TUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THI S BEHALF; AND (B) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE T RUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, HE--- (I) SHALL PASS AN ORDER IN WRITING REGISTERING THE TRUST OR INSTITUTION; (II) SHALL, IF HE IS NOT SO SATISFIED, PASS AN ORDE R IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION, AND A COPY OF SUCH ORDER SHALL BE SENT TO THE APPLI CANT: PROVIDED THAT NO ORDER UNDER SUB-CLAUSE (II) SHALL BE PASSE D UNLESS THE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNI TY OF BEING HEARD. (1A) ALL APPLICATIONS, PENDING BEFORE THE CHIEF COM MISSIONER ON WHICH NO ORDER HAS BEEN PASSED UNDER CLAUSE (B) OF SUB-SECTION (1) BEFORE THE 1 ST DAY OF JUNE, 1999, SHALL STAND TRANSFERRED ON THAT DAY TO THE COMMISSIONER AND THE COMMISSIONER MAY PROCEED WITH SUCH APPLICATIONS UNDER THAT SUB-SECTION FROM THE STAGE AT WHICH THEY WERE ON THAT DAY. ] (2) EVERY ORDER GRANTING OR REFUSING REGISTRATION U NDER CLAUSE (B) OF SUB-SECTION (1) SHALL BE PASSED BEFORE THE EXPIRY O F SIX MONTHS FROM THE END OF THE MONTH IN WHICH THE APPLICATION WAS R ECEIVED UNDER CLAUSE (A) [ OR CLAUSE (AA) OF SUB-SECTION (1)] OF SECTION 12A] (3) WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTE D REGISTRATION UNDER CLAUSE (B) OF SUB-SECTION (1) AND SUBSEQUENTLY THE COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INST ITUTION ARE NOT GENUINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST 12 I.T.A. NO. 594 (ASR)/2013 OR INSTITUTION, AS THE CASE MAY BE, HE SHALL PASS A N ORDER IN WRITING CANCELLING THE REGISTRATION OF SUCH TRUST OR INSTIT UTION: PROVIDED : THAT NO ORDER UNDER THIS SUB-SECTION SHALL BE PAS SED UNLESS SUCH TRUST OR INSTITUTION HAS BEEN GIVEN A REASONAB LE OPPORTUNITY OF BEING HEARD. 9. AFTER THOROUGHLY GOING THROUGH THE WORDINGS OF T HE OF THE TRUST DEED OF THE ASSESSEE-TRUST AS WELL AS THE PROVISION S OF LAW I.E. SECTION 12A AND 12AA OF THE ACT AS WELL AS THE IMPUGNED ORD ER PASSED BY LEARNED CIT-II, AMRITSAR, WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE TRUST HAS BEEN CONSTITUTED BY FOUR MEMBERS WHO WERE CLOSE RELATIVES, AS IS EVIDENT FROM THE FIRST PAGE OF THE TRUST DEED. T HEREFORE, IN OUR VIEW, THE TRUST IS CONSTITUTED BY FAMILY MEMBERS OF THE FOUND ER OF THE TRUST I.E. R.D. SINGLA AND CONTROL OF THE TRUST IS VESTED WITHIN TH E FAMILY ITSELF. ACCORDING TO THE PROVISIONS OF SECTION 12AA, THE CO MMISSIONER, ON RECEIPT OF APPLICATION FOR REGISTRATION OF TRUST OR INSTITUTION SHALL HAVE TO EXAMINE THE DOCUMENTARY EVIDENCE FILED BY THE ASSES SEE ALONG WITH THE APPLICATION FOR GRANTING REGISTRATION. THE COMMISSI ONER CAN CALL FOR ANY TYPE OF DOCUMENTARY EVIDENCE OR INFORMATION FROM TH E TRUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION. IF HE H AS ANY DOUBT IN HIS MIND THEN HE MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY. BEFORE 13 I.T.A. NO. 594 (ASR)/2013 GRANTING THE REGISTRATION TO ANY TRUST OR INSTITUTI ON, COMMISSIONER SHOULD BE SATISFIED ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTION, AS THE CASE MAY BE. 10. ON THE FACE OF TRUST DEED, A DOUBT IS CREATED IN THE MIND THAT ONE SINGLA FAMILY HAD CONSTITUTED THE ASSESSEE-TRUST, W HICH IS NOT PERMISSIBLE UNDER THE LAW. FOR GETTING THE BENEFIT OF REGISTRAT ION UNDER SECTION 12AA OF THE ACT, MOTIVE SHOULD BE VERY CLEAR THAT IS ONE AND ONLY CHARITABLE TO THE PUBLIC IN GENERAL NOT TO FAMILY OR A PARTICULAR COMMUNITY OR CASTE. THERE SHOULD NOT BE ANY BENEFIT OF INCOME, CONTRIBU TION AND FUNDS OF THE TRUST DIRECTLY OR INDIRECTLY TO ANY RELATIVE OF THE TRUSTEE. AS PER THE TRUST DEED, THE TRUST HAS BEEN CONSTITUTED BY FAMILY MEMB ERS OF FOUNDER OF THE TRUST, SH. R.D. SINGLA AND THE ENTIRE CONTROL OF TH E TRUST IS VESTED WITHIN THE FAMILY ITSELF. LEARNED COUNSEL FOR THE ASSESSEE HAS RELIED UPON VARIOUS CASE-LAWS. 11. WE HAVE THOROUGHLY GONE THROUGH ALL THE JUDGMENT S OF HON'BLE HIGH COURT CITED BY LEARNED COUNSEL FOR THE ASSESSE E AND FOUND THAT THESE ARE NOT APPLICABLE TO THE FACT AND CIRCUMSTANCES OF THE PRESENT CASE. IN ALL THE CASE-LAWS RELIED UPON BY LEARNED COUNSEL FOR TH E ASSESSEE, HE HAS NOT CITED ANY CASE LAW WHERE THE TRUST HAS BEEN CONSTIT UTED BY A FAMILY 14 I.T.A. NO. 594 (ASR)/2013 MEMBERS FOR THE BENEFIT OF ONE FAMILY AND THE REGIS TRATION UNDER SECTION 12AA HAS BEEN GRANTED BY ANY AUTHORITY. THEREFORE, THE CASE LAWS RELIED UPON BY LEARNED COUNSEL FOR THE ASSESSEE IS NOT HEL PFUL TO THE ASSESSEE. 12. KEEPING IN VIEW THE AFORESAID DISCUSSION, WE ARE OF THE VIEW THAT MERELY WRITING SOME AIMS AND OBJECTS CHARITABL E IN NATURE IN THE TRUST DEED, AS MENTIONED IN THE TRUST DEED REPRODUCED ABO VE, DOES NOT MEAN THAT THE ACTIVITIES OF THE TRUST OR INSTITUTION ARE CHARITABLE IN NATURE AND ARE GENUINE. THERE SHOULD BE SOME PRACTICAL ACTIVITIES WHICH SATISFY THE AUTHORITY CONCERNED BEFORE GRANTING THE REGISTRATIO N UNDER SECTION 12AA OF THE ACT. IN THE PRESENT CASE, THE ASSESSEE HAS N OT DONE ANYTHING NOR PRODUCED ANY EVIDENCE SATISFYING LEARNED CIT-II, AM RITSAR, ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTI TUTION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT WHERE TH E TRUST HAS BEEN CONSTITUTED BY A FAMILY MEMBER LIKE THE ASSESSEE-TR UST ON HAND. IN OUR CONSIDERED VIEW, THE ASSESSEE TRUST IS NOT ENTITLED FOR THE REGISTRATION UNDER SECTION 12AA OF THE ACT AND THE LEARNED CIT-I I, AMRITSAR, HAS PASSED A WELL REASONED ORDER AS PER LAW, AFTER CONS IDERING THE ENTIRE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE-TRUST. 15 I.T.A. NO. 594 (ASR)/2013 13. IN VIEW OF THE FOREGOING DISCUSSION, NO INTERFER ENCE IS REQUIRED IN THE IMPUGNED ORDER. ACCORDINGLY, WE UPHOLD THE I MPUGNED ORDER DATED 24/25 TH SEPTEMBER, 2013 AND DISMISS THE APPEAL FILED BY TH E ASSESSEE. 14. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD FEBRUARY, 2014 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 RD FEBRUARY, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: G.D. KAVITA SINGLA CHARITABLE TRUST, 10-A, RANI KA BAGH, AMRITSAR 2. C.I.T.-II, AMRITSAR 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.