CIT v. Surya Educational & Charitable Trust

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The Tax Publishers2012 TaxPub(DT) 0780 (P&H-HC) : (2013) 355 ITR 0280 : (2011) 203 TAXMAN 0053 INCOME TAX ACT, 1961 --Charitable trust--Registration under section 12AARefusal of--CIT declined assessee's claim of registration under section 12Aa on the ground that its dominant objective of establishing educational institutions was premature as it was still in the process of pruchase of land for this purpose, construction of building of educational institutes had still not started and neiterany action hadbeen taken for raising infrastructure nor any permission from AITEE had been received. Held: ,/i>The application for registration under section 12Aa was reqired to be made within one year of creation of the trust and the object of section 12AA, of the Act, is to examine the genuineness of the objects of the trust, but not the income of the trust for charitable or religious purposes. The stage for application of income was yet to arrive, i.e., when such trust or Institution files its return the quantum of activities undertaken by the trust after its creation, cannot be the basis examining registration application under section 12AA. Therefore, the denial of application fo registration wasnot justified. Income Tax Act, 1961 Section 12AA IN THE PUNJAB AND HARYANA HIGH COURT HEMANT GUPTA & G. S. SANDHAWALIA, JJ. CIT v. Surya Educational & Charitable Trust IT Appeal Nos. 701 of 2010 & 189 of 2011 (O&M) 5 October 2011 Appellant by : Urvashi Dugga JUDGMENT *Hemant Gupta, J* This order shall dispose of ITA No. 701 of 2010 and ITA No. 189 of 2011, wherein the learned Income Tax Appellate Tribunal, Chandigarh (for short the Tribunal), granting registration to the respondent under section 12AA of the Income Tax Act, 1961 (for short the Act), for carrying on its object of establishing educational Institutions. 2. The question raised in both the appeals is identical, but for the facility of reference, the facts are taken from ITA No. 701 of 2010. 3. The respondent-assessee applied for registration under section 12A of the Act on 19-8-2008, after registration of the society on 12-8-2008. The learned Commissioner of Income Tax, the competent authority to grant of registration, sought explanation from the respondent, as to why registration has been sought when it is still in the process of acquiring land; construction of building of educational Institution is yet to start; various other steps for raising the appropriate infrastructure have yet not been taken and that the approval of the All India Council for Technical Education has yet not been received. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0780 (P&H-HC) : (2013) 355 ITR 0280 : (2011) 203 TAXMAN 0053

INCOME TAX ACT, 1961

--Charitable trust--Registration under section 12AARefusal of--CIT declined assessee's claim of registration under section 12Aa on the ground that its dominant objective of establishing educational institutions was premature as it was still in the process of pruchase of land for this purpose, construction of building of educational institutes had still not started and neiterany action hadbeen taken for raising infrastructure nor any permission from AITEE had been received. Held: ,/i>The application for registration under section 12Aa was reqired to be made within one year of creation of the trust and the object of section 12AA, of the Act, is to examine the genuineness of the objects of the trust, but not the income of the trust for charitable or religious purposes. The stage for application of income was yet to arrive, i.e., when such trust or Institution files its return the quantum of activities undertaken by the trust after its creation, cannot be the basis examining registration application under section 12AA. Therefore, the denial of application fo registration wasnot justified.

Income Tax Act, 1961 Section 12AA

IN THE PUNJAB AND HARYANA HIGH COURT

HEMANT GUPTA & G. S. SANDHAWALIA, JJ.

CIT v. Surya Educational & Charitable Trust

IT Appeal Nos. 701 of 2010 & 189 of 2011 (O&M)

5 October 2011

Appellant by : Urvashi Dugga

JUDGMENT

Hemant Gupta, J

This order shall dispose of ITA No. 701 of 2010 and ITA No. 189 of 2011, wherein the learned Income Tax Appellate Tribunal, Chandigarh (for short the Tribunal), granting registration to the respondent under section 12AA of the Income Tax Act, 1961 (for short the Act), for carrying on its object of establishing educational Institutions.

2. The question raised in both the appeals is identical, but for the facility of reference, the facts are taken from ITA No. 701 of 2010.

3. The respondent-assessee applied for registration under section 12A of the Act on 19-8-2008, after registration of the society on 12-8-2008. The learned Commissioner of Income Tax, the competent authority to grant of registration, sought explanation from the respondent, as to why registration has been sought when it is still in the process of acquiring land; construction of building of educational Institution is yet to start; various other steps for raising the appropriate infrastructure have yet not been taken and that the approval of the All India Council for Technical Education has yet not been received.