Sant Iswar Shiksh Samiti, Jammu V. The Commissioner of Income Tax (Exemptions), Chandigarh

ITA 671/ASR/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7852 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-06-2017
• Assessment Year: 2015-2016
• Appeal Filed On: 28-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GHULAM MUSTFA LD
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE T RIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH.T.S. KAPOOR, ACCOUNTANT MEMBER AND SH.N.K.CHOUDHRY, JUDICIAL MEMBER I.T.A. NOS.670 (ASR)/2015 ASSESSMENT YEAR: 2015-16 SANT ISHWAR SHIKSHA SAMITI, 92/9, TRIKUTA NAGAR. JAMMU. PAN:AAPTS-2426M VS. THE CIT, (EXEMPTION) CHANDIGARH. (APPELLANT) (RESPONDENT) AND I.T.A. NOS.671 (ASR)/2015 ASSESSMENT YEAR: 2015-16 SANT ISHWAR FOUNDATION 92/9, TRIKUTA NAGAR. JAMMU. PAN:AAPTS-2425J VS. THE CIT, (EXEMPTION) CHANDIGARH. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. JOGINDER SINGH (LD. CA.) RESPONDENT BY : SH. GHULAM MUSTFA (LD. DR) DATE OF HEARING: 24.08.2017 DATE OF PRONOU NCEMENT: 30.08.2017 ORDER PER N. K. CHOUDHRY: BOTH THE APPEALS ARE IDENTICAL AND ISSUES INVOLVED ARE ALSO ALMOST SIMILAR , THEREFORE THE SAME HAVE BEEN TAKEN FOR ADJU DICATION BY THIS COMMON ORDER . FOR THE SAKE OF CONVENIENCE AND BREVITY , FACTS AND GROUNDS RAISED IN APPEAL NO. I.T.A. NOS.670 (ASR)/2015 HAS BEEN TAKEN IN TO CONSIDERATION. THE APPEAL UNDER CONSIDERATION , ARISING OUT FROM THE ORDER PASSED U/S 12AA OF THE I.T. ACT, 1961 BY THE CIT(EXEMPTION), ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 2 CHANDIGARH, FEELING AGGRIEVED AGAINST THE REJECTION OF ITS APPLICATION U/S 12AA DATED 31.11.2015, FOR ASST. YEAR:2015-16. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ID CIT, EXEMPTION CHANDIGARH HAS ERRED BOTH IN LAW AND ON F ACTS OF THE CASE BY REJECTING REGISTRATION U/S 12AA OF THE ACT TO THE A PPELLANT TRUST. 2. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, THE ID CIT, EXEMPTION CHANDIGARH HAS ERRED BOTH IN LAW AND ON F ACTS OF THE CASE BY DENYING THE REGISTRATION ON THE GROUND THAT THE ASS ESSEE TRUST HAS NOT CARRIED OUT ANY ACTIVITY. 3. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTAN CES OF THE CASE, THE ID CIT, EXEMPTION CHANDIGARH HAS ERRED BOTH IN LAW AND ON F ACTS OF THE CASE BY DENYING THE REGISTRATION ON THE GROUND THAT THE ASS ESSEE TRUST HAS INITIALLY DECIDED TO CONSTRUCT SCHOOL & MEDITATION HALL AT AS AR DODA BUT LATER PURCHASED LAND FOR SCHOOL AT NIABHAT, NAGROTA. 4. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTAN CES OF THE CASE, THE ID CIT, EXEMPTION CHANDIGARH HAS ERRED BOTH IN LAW AND ON F ACTS OF THE CASE BY DENYING THE EXEMPTION ON THE GROUND THAT THE ACTIVI TIES OF ASSESSEE TRUST ARE CONTROLLED BY ONE FAMILY. 5. THAT THE APPELLANT CRAVES TO LEAVE TO ADD, AM END, MODIFY, DELETE ANY OF THE GROUND OF APPEAL BEFORE OR AT THE TIME OF HEARING A ND ALL THE ABOVE GROUNDS ARE WITHOUT PREJUDICE TO EACH OTHER. 3. THE BRIEF FACTS OF THE CASE EMERGED FROM THE ORDER PA SSED BY THE LD. CIT(A) AS WELL AS DOCUMENTS THAT THE APPLICATION U /S 12AA OF THE ACT WAS FILED BY THE BY THE APPLICANT TRUST ON 15.05.2015 AS THE AFORESAID TRUST WAS FOUNDED BY SH. KAPIL KHANNA, A BUSINESSMAN, O N 12.03.2015 AS A PUBLIC CHARITABLE TRUST. THE MAIN OBJECTS OF THE TRUST HAVE BEEN CLAIMED TO BE ENGAGED IN THE EDUCATIONAL, SOCIAL, LITERATURE AND RESEARCH ORIENT ED WORK, AND UPLIFTING OF THE UNPRIVILEGED AND ECONOMICALLY & SOCIAL LY WEAKER SECTIONS OF THE SOCIETY. ON CONSIDERATION OF APPLICATION FOR REGI STRATION, THE LD. CIT(E) OFFERED THE OPPORTUNITIES TO THE ASSESSEE TRUST AN D PERUSED THE REPLY FILED AND OBSERVED THAT TILL DATE JUST A SINGLE ACTIVITY WAS UNDERTAKEN BY THE TRUST WHICH REFLECTS FROM ENTRY OF R S.20 LAKHS AS ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 3 DONATION WHICH WAS THEREAFTER, CONVERTED INTO A FDR BY THE TRUST. FURTHER QUERY SOUGHT BY THE LD. CIT(A) REPLIED BY T HE ASSESSEE SOCIETY, HOWEVER, THE LD. CIT(E) OBSERVED THAT APPLICATION U/S 12AA STATUTORY REQUIRES TO BE PROCESSED ON THE BASIS OF TWIN CRITERIA I .E., OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES AND FINALLY REJ ECTED THE REGISTRATION ON THREE LIMBS FIRST THAT THE ASSESSEE HAS NO T CARRIED OUT ANY CHARITABLE ACTIVITY , SECONDLY HAS ONLY ENTERED INT O AGREEMENT TO PURCHASE A PIECE OF LAND IN THE NAME OF ACTIVITY AND TH IRDLY, IN THE TRUST DEED HAVING SOME RESTRICTIVE CLAUSES WHICH RENDERED WORKI NG OF TRUST AS CAPABLE OF BEING CONTROLLED BY A SINGLE FAMILY AND CONTENTS OF OBJECTS OF THE TRUST DO NOT FIND CORROBORATION IN SHAPE OF ANY POSITIVE ACTION TAKEN TOWARDS EITHER EDUCATION OR ANY OF THE OT HER OBJECTS ENUNCIATED IN THE TRUST DEED AND FINALLY THE LD. CIT( E) HELD THAT IN THE ABSENCE OF ANY CHARITABLE ACTIVITY IN THE INSTANT CASE, BO TH THE OBJECTS OF THE TRUST AND THE GENUINENESS OF THE ACTIVITY DO NOT STA ND CORROBORATED. 4. THE ASSESSEE TRUST ASSAILED THE ORDER BEFORE US AND IN SUP PORT OF ITS CASE LD. A.R. SUBMITTED THAT THE LD. CIT(E) LOST SIG HT TO THE SPIRIT OF THE SEC.12AA OF THE ACT AS THE TRUST HAS BEEN RECENTLY CRE ATED AND STILL THE ACTIVITIES HAS TO BE UNDERTAKEN IN DUE COURSE AND TI ME OR NEAR FUTURE AND THE MOTTO OF OBJECTS OF THE ASSESSEE IS TO SPREA D THE EDUCATIONAL, SOCIAL, LITERATURE AND RESEARCH ORIENTED W ORK, AND UPLIFTING OF THE UNPRIVILEGED AND ECONOMICALLY & SOCIALLY WEAKER SECTIONS OF THE SOCIETY AND FOR THAT ASSESSEE TRUST HAS ALREADY ACQUIRED TH E LAND WHICH HAD BEEN SHOWN TO THE LD. CIT(E) AND THEREAFTER, THE CONSTRUCTION HAVE BEEN STARTED AND THE BUILDING IS UNDER ADVANCE STAGE OF THE COMPLETION, THEREFORE, THE ASSESSEE IS RIGHT TO GET REGISTRATION U/S 12A OF THE ACT. 5. ON THE CONTRARY, THE LD. DR SUBMITTED THAT THE ORDE R PASSED BY THE LD. CIT(E) IS A LOGICAL, REASONED AND LEGAL ORDER AND DOES NOT REQUIRES TO BE INTERFERED WITH BECAUSE THE LD. CIT(E) HAS TAKEN INTO ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 4 CONSIDERATION THE FACTS AND CIRCUMSTANCES OF THE CASE BECAUSE UNTIL DATE OF THE IMPUGNED ORDER AS NO ACTIVITY WAS CARRIED O UT IN ORDER TO EXECUTE THE OBJECTS OF THE TRUST, THEREFORE, THE LD. C IT(E) WAS NOT HAVING ANY OPTION BUT TO DENY THE REGISTRATION. 6. WE HAVE GONE THROUGH WITH THE FACTS AND CIRCUMSTA NCES OF THE CASE AND ALSO RIVAL SUBMISSIONS OF THE PARTIES, RELEVANT D ATES ARE VERY MUCH MATERIAL IN THE INSTANT CASE. THE TRUST WAS ESTABLI SHED AND REGISTERED ONLY ON 12 TH MARCH, 2015 AND THEREAFTER, APPLICATION FOR REGISTRATION U/S 12A WAS FILED ON 29.04.2015 AND MAIN OBJECTS OF THE TRUST ARE ESTABLISHMENT OF EDUCATIONAL INSTITUTION AND/ OR MAINTENANCE OF EDUCATIONAL INSTITUTION ,MEDITATION AND PRAYER HALLS , GRANTING OF SCHOLARSHIP AND FINANCIAL ASSISTANCE TO NEEDY FOR EDUCATIONA L PURPOSES AND ESTABLISHMENT OF HOSPITALS AND NURSING HOMES ETC. WHICH ARE COVERED UNDER THE DIMENSION OF SEC.2(15) OF THE I.T. A CT. FURTHER WE FEEL IT APPROPRIATE TO REPRODUCE HEREIN THE CONTENTS OF SEC.12AA OF THE ACT. SECTION 12AA (1) THE CHIEF COMMISSIONER OR COMMISSIONER, ON RECE IPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR INSTITUTION MADE UND ER CLAUSE (A) [OR CLAUSE (AA) OF SUB-SECTION (1)] OF SECTION 12A , SHALL (A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABO UT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THIS BEHALF; AND (B) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF T HE TRUST 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 : ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 5 PROVIDED THAT NO ORDER UNDER SUB-CLAUSE (II) SHALL BE PASSE D UNLESS THE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNITY O F BEING HEARD. (2) EVERY ORDER GRANTING OR REFUSING REGISTRATION U NDER CLAUSE (B) OF SUB- SECTION WHICH THE APPLICATION WAS RECEIVED UNDER CL AUSE (A) OF SECTION 12A.] FROM THE CONTENTS OF THE SEC.12AA, IT ENCOMPASS THAT THE LD. CIT(E) IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINEN ESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION CAN CALL FOR SUCH DOCUMENTS O R INFORMATION FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSARY AND ALSO EMPOWERED TO MAKE SUCH ENQUIRY AS HE MAY DEEM FIT NECESSARY IN THIS BEHALF. SECOND CLAUSE DEALS WITH THAT AFTER SATISFYING HIMSELF AB OUT THE OBJECT OF THE TRUST OR INSTITUTION AND THE GENUINENESS O F THE ACTIVITIES, HE SHALL PASS ORDER IN WRITING EITHER TO REGISTER OR REFU SING TO REGISTER THE TRUST OR INSTITUTIONS. LET US TO CONSIDER JUDICIAL VERDICTS ON THE ISSUES IN HAND : DELHI HIGH COURT IN THE CASE OF DIT VS. FOUNDATION OF OPTHALMIC & OPTOMETRY RESEARCH EDUCATION CENTER, IN ITA NO.1687/2 010 , DECIDED ON DATED 16.08.2012 DEALT WITH THE SAME SITUATION AND OBSERVED AS UNDER: THAT THE CONCERN CIT IS NOT REQUIRED TO EXAMINE TH E QUESTION WHETHER THE TRUST HAS ACTUALLY COMMENCED AND HAS, IN FACT, CARRIED ON CHARITABLE ACTIVITIES ? GUJRAT HIGH COURT IN THE CASE OF CIT -1, VS. KUTCHI DASA OSWAL MOTO PARIWAR AMBAMA TRUST (2014 271 CTR 0595 WAS PLEA SED TO HELD THAT ' WHILE CONSIDERING THE APPLICATION U/S 12AA, THE C OMMISSIONER HAS TO SATISFY HIMSELF ABOUT THE OBJECTIVES OF THE TRUST AND GENUINENESS OF ITS ACTIVITIES AND FOR SUCH PURPOSES , HE HAS THE POWER ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 6 TO CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST AS HE THINK ARE NECESSARY. HOWEVER, THIS DOES NOT MEAN THAT IF THE ACTIVITIES OF THE TRUST HAVE NOT COMMENCED THE COMMISSIONER HAS AUTHO RITY TO REJECT ITS APPLICATION FOR REGISTRATION ON THE GROUND THAT THE TRUST HAS FAILED TO CONVINCE HIM ABOUT THE GENUINENESS OF THE ACTIVITIE S. THAT IS WHAT UNFORTUNATELY THE COMMISSIONER DID IN THE PRESET CA SE '. FURTHER, ALLAHABAD HIGH COURT IN THE CASE OF HARDAYAL C HARITABLE & EDUCATIONAL TRUST VS. COMMISSIONER OF INCOME TAX-II, AGRA DECIDED ON 15 MARCH, 2013 OBSERVED THAT: ' THE PREPONDERANCE OF THE JUDICIAL OPINION OF HIGH COURTS AS WELL AS ITAT IS THAT AT THE TIME OF REGISTRATION U/ S 12AA OF THE ACT, THE CIT IS NOT REQUIRED TO LOOK INTO THE ACTIVITIES, WH ERE SUCH ACTIVITIES HAVE NOT OR ARE IN THE PROCESS OF ITS INITIATION. W HERE A TRUST, SET UP TO ACHIEVE ITS OBJECTS OF ENABLING EDUCATIONAL INSTITU TION, IS IN THE PROCESS OF ESTABLISHING SUCH INSTITUTION AND RECEIVES DONAT IONS, THE REGISTRATION U/S 12AA CANNOT BE REFUSED, ON THE GRO UND THAT THE TRUST HAS NOT YET COMMENCED THE CHARITABLE OR RELIGIOUS A CTIVITY' . FURTHER, CO-ORDINATION BENCH OF ITAT, AMRITSAR IN TH E CASE OF EK UMEED WELFARE SOCIETY, FAZIKA VS. ASSESSEE IN ITA NO.615( ASR)/2013 'DIRECTED TO GRANT REGISTRATION TO THE SOCIETY WHER E THE REGISTRATION WAS DENIED BY THE CIT ON GROUND OF NEGLIGIBLE ACTIV ITY TILL THE DATE OF REGISTRATION'. LET US TO CONSIDER REASONS FOR REJECTION OF APPLICATION FOR GRANT OF REGISTRATION U/S 12 AA OF THE ACT: FIRST REASON FOR DENIAL OF REGISTRATION BY THE LD. CIT WAS THAT THAT THE ASSESSEE TRUST HAS NOT CARRIED OUT ANY ACTIVITY. SECOND REASON THAT THE ASSESSEE TRUST HAS INITIALLY DECIDED TO CONSTRUCT SCHOOL & MEDITATION HALL AT ASAR DODA BUT LATER PURCHASED LAND FOR SCHOOL AT NIABHAT, NAGROTA THIRD REASON THAT THE ACTIVITIES OF ASSESSEE TRUST ARE CONTROLLED BY ONE FAMILY . THE REASONS GIVEN BY THE LD. CIT(E ) DOES NOT SOUND GO OD BECAUSE , ONE SIDE REASONED THAT NO ACTIVITY HAS BEEN CARR IED OUT BY THE ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 7 ASSESSE TRUST , ON THE OTHER HAND HAS DOUBTED THE INTENTS OF THE OBJECTS AND FURTHER OBSERVATION THAT INITIALLY THE ASSESSEE WAN TED TO CONSTRUCT SCHOOL & MEDITATION HALL AT ASAR DODA BUT LATER PURCHASE D LAND FOR SCHOOL AT NIABHAT, NAGROTA , IN OUR VIEW , THE TRUST THAT TIME WAS UN- DOUBTLY AT NASCENT STAGE AND HAS NOT CARRIED OUT ANY ACTI VITY EXCEPT TO MAKE EFFORTS FOR PROCURING LAND FOR SCHOOL , HOWEVER L ATER ON PURCHASED THE LAND FOR SCHOOL AT NIABHAT, NAGROTA , WHICH CLEARL Y SHOWS THE INTENTION OF THE TRUST AS THE MAIN OBJECT OF THE TRUST IS TO ESTABLISH SCHOOLS ETC. AND TO PROVIDE EDUCATION, THEREFORE, ONE CAN EXPECT FROM THE TRUST TO DO ACTIVITY OF THE CHARITY IMMEDIATELY AND IN THAT SITUATION THE AUTHORITY CANNOT COME TO THE CONCLUSION THAT THE INT ENT CONTAINED IN THE OBJECTS OF THE TRUST DO NOT FIND CORROBORATION IN THE SHAPE OF ANY POSITIVE ACTION TAKEN TOWARDS EITHER EDUCATION OR ANY O F THE OTHER OBJECTS ENUNCIATED IN THE TRUST DEED , AS OBSERVED BY THE LD.CIT (E ) . THIRD REASON THAT THE ACTIVITIES OF ASSESSEE TRUST ARE CONT ROLLED BY ONE FAMILY IS ONLY AN APPREHENSION OF THE LD. CIT (E ) , WHICH ACCORDING TO OUR MIND CAN NOT BASE REJECTION OF THE REGISTRATION BECAUSE THE REVENUE AUTHORITY IS AT LIBERTY TO WITHDRAW AND/OR T O CANCEL THE REGISTRATION AN ANY TIME ON THE SPECIFIED REASONS ENUME RATED IN THE ACT. FURTHER FROM THE DOCUMENTS FILED BEFORE US, IT REFLECTS THAT THE ASSESSEE TRUST HAS ALREADY PURCHASED THE LAND WHICH IS 9 KA NALS 19 MARLAS SITUATED AT VILLAGE BALIAN, TESHIL UDHAMPUR, AN D FURTHER ALSO GOT APPROVED SANCTIONED PLAN FOR CONSTRUCTION OF SCHOOL FROM THE CONCERNED EXECUTIVE ENGINEER OF THE AREA , NO OBJECTION FOR CON STRUCTION FROM THE CONCERNED PANCHAYAT AND CONSTRUCTION OF SCHOOL IS AT ADVA NCE STAGE AND ALSO EXECUTED MEMORANDUM OF UNDERSTANDING WITH THE BHARTIYA SHIKSHA SAMITI, WHICH IS INVOLVED IN THE FIELD OF I MPARTING FORMAL EDUCATION HAVING ESTABLISHED A NUMBER OF PRIMARY AND SECONDARY LEVEL SCHOOLS IN DIFFERENT PART OF JAMMU & KASHMIR AS SUBMITT ED . ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 8 FURTHER FROM THE CUTTING OF NEWSPAPERS, IT REFLECTS TH AT INAUGURATION FOR CONSTRUCTION AND LAYING STONE FOR ESTAB LISHMENT OF THE SCHOOL HAS ALREADY BEEN DONE AND AS PER COMPUTATION OF INCOME OF ASST. YEAR: 2016-17 IT REFLECTS THAT THE ASSESSEE TRUST HAS R ECEIVED RS.1,80,52,900/- AS VOLUNTARILY CONTRIBUTION AND DURI NG THE FINANCIAL YEAR THE ASSESSEE TRUST HAS INCURRED THE EXPENDITURE OF R S.13089100 AND RS.379000 FOR THE PURCHASE OF THE LAND AND ITS CONST RUCTION FOR SCHOOL PURPOSES, AND FURTHER INCOME AND EXPENDITURE FOR THE PERIOD ENDED 31 ST MARCH, 2016 SHOWS THAT THE ASSESSEE TRUST HAS CONTRIBUTED RS.11,000/- TO THE P.M. RELIEF FUND AND RS. 9,472/- F OR CLEANING MOMENT AT KATRA AND RS.5,640/- FOR THE ENVIRONMENT AWARENESS AND RS.8,548/- FOR MEDICAL CARE AT FDR. ON PERUSAL OF RECORDS AND JUDGMENTS, IT IS CLEAR THAT AT THE TIME OF REGISTRATION U/S 12AA OF THE ACT, THE LD. CIT(E) IS REQUIRED TO SEE THE OBJECTS OF THE TRUST OR INSTITUTIONS AND GENUINENESS OF ITS ACTIVITIES, HOWEVER, IF WE COME TO THE INSTANT CASE, THEN IT IS NOT DISPUTED THAT THE TRUST WAS FORMED AND REGISTERED ONLY ON 12 TH MARCH, 2015 THEREAFTER, APPLICATION FOR REGISTRATION U/S 12AA WAS FILED ON 15. 05.2015 AND THE IMPUGNED ORDER WAS PASSED ON 30 TH NOV. 2015 AND TILL THE DISPOSAL OF THE APPLICATION THE ASSESSEE HAS ONLY RECEIVED SINGLE DONAT ION AND TRIED TO PROCURE THE LAND FOR ESTABLISHMENT OF THE SCHOOL A ND FURTHER BECAUSE THE ASSESSEE TRUST WAS AT NASCENT STAGE, THEREFORE, COULD NOT CARRY ANY ACTIVITY AND ACCORDING TO AFORESAID JUDGMENTS IT IS CLEA R THAT STATUTE DOES NOT PRESCRIBE A WAITING PERIOD FOR A NEWLY REGISTE RED TRUST TO QUALIFY ITSELF FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND WAIT TILL THE ACTIVITY COMMENCE. FROM THE CONJOINT READING OF THE AFORESAID JUDGMENTS, IT CAN BE SAFELY CONCLUDED THAT EVEN OTHERWI SE IF NO ACTIVITY WAS CARRIED OUT BY A TRUST OR INSTITUTION, STILL REGIST RATION CAN BE GRANTED BY THE CIT(E) AND EVEN OTHERWISE IT IS NOT THE CASE OF THE REVENUE THAT AT THE TIME OF CONSIDERATION OF APPLICATION OF THE ASSE SSEE , THE ASSESSEE HAS CARRIED OUT MANY ACTIVITIES AND THEIR GENUINENESS WER E IN DOUBT BUT ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 9 IN THE INSTANT CASE GRIEVANCE OF THE CIT(E) IS ONLY THAT THERE WAS NO ACTIVITY CARRIED OUT BY THE ASSESSEE. ALTHOUGH FORM THE DOCUMENTS SUBMITTED BEFORE US POSITIVE LY REFLECTS THAT THE ASSESSEE TRUST HAS CARRIED OUT MANY ACTIVI TIES IN FURTHERANCE OF OBJECTS OF THE TRUST, HOWEVER BECAUSE THE SAME ACTIVITIES HAVE NOT BEEN CARRIED OUT AND DOCUMENTS WERE ALSO NOT SU BMITTED BEFORE THE LD. CIT (E ) TILL THE DATE OF ADJUDICATIO N OF APPLICATION , HENCE WE ARE NOT TAKING INTO CONSIDERATION THE SAID DOCUMENTS AND FACTS , HOWEVER IN OVERALL CONSIDERATION OF THE JUDICIAL INTE RPRETATION , PECULIAR FACTS AND CIRCUMSTANCES AND SITUATION, IN OUR CONSIDERED OPIN ION THE LD. CIT(A) WAS UNDER OBLIGATION TO CONSIDER THE OBJECTS OF T HE TRUST WHICH ARE AVAILABLE IN THE TRUST DEED ITSELF. EVEN OTHERWISE , THE CONCERNED REVENUE AUTHORITY WAS EMPOWERED TO WITHDRAW THE REGI STRATION ALREADY GRANTED OR CANCEL THE SAID REGISTRATION IF HE CAME ACROSS T HAT FACTUALLY TRUST HAS NOT CONDUCTED ANY CHARITABLE ACTIVITIES. ALTHOUGH, IN THE OPEN COURT WE HAD SHOWN OUR INCLIN ATION TO REMAND THE CASE WITH DIRECTION TO THE ASSESSEE TO APPROACH THE LD. CIT(E) WITH THE DOCUMENTS AS SUBMITTED BEFORE THIS FORU M BECAUSE THE DOCUMENTS WERE NOT AVAILABLE BEFORE THE CIT(E), HOWEV ER, CONSIDERING THE PRINCIPLES LAID DOWN BY THE VARIOUS COURTS AS IT IS NOT IN CONTROVERSY THAT TILL THE ADJUDICATION OF APPLICATION U/S 12AA OF THE ACT, THE TRUST WAS AT NASCENT STAGE AND ALL THE ACTIVITIES WHICH ARE REFLECTI NG FROM THE DOCUMENTS SUBMITTED HEREIN ARE OF THE LATER STAGE, HOWE VER, IN OUR CONSIDERED OPINION AT THE TIME OF DISPOSAL OF APPLICATIO N, THE LD. CIT(E) IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION CAN CALL FOR SUCH DOCUMENTS OR INFORMA TION FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSARY AND ALSO EMPOW ERED TO MAKE SUCH ENQUIRY AS HE MAY DEEM FIT NECESSARY IN THIS BEHALF , SECONDLY THAT AFTER SATISFYING HIMSELF ABOUT THE OBJECT OF THE T RUST OR INSTITUTION AND THE GENUINENESS OF THE ACTIVITIES, HE SHALL PASS ORDE R IN WRITING ITA NO.670 & 671(ASR)/2015 ASST. YEAR: 2015-16 10 EITHER REGISTER OR REFUSING TO REGISTER THE TRUST OR INSTITUTIONS. IN THE INSTANT CASE NO ACTIVITY WAS CARRIED OUT THEREFORE QUESTIO N OF GENUINENESS DID NOT ARISE. HENCE, WE DIRECT THE LD. CIT(E) TO GRANT THE REGISTRATI ON U/S 12A OF THE ACT TO THE ASSESSEE AND IT IS CLARIFIED IN CASE, THE ASSESSEE DOES NOT QUALIFY/SATISFY THE OBJECTS OF THE TRUST AND/OR NOT INVOLVED IN GENUINE ACTIVITIES , THEN THE CONCERNED AUTHORITY SHALL BE AT LIBERTY TO WITHDRAW OR TO CANCEL THE REGISTRATION U/S 12A OF THE ACT. HENCE, IN THE AFORESAID OBSERVATIONS, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON30.08 .2017. SD/- SD/- (T. S. KAPOOR) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:30.08.2017. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER