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2.2 Initially the objects of the Trust could not be activated. The trust was lying defunct till the year 1983. It moved an application to CIT, Meerut in 1983 under section 12A of the Income-tax Act, 1961 (hereinafter called the "Act" for registration. Prayer for condonation of delay was also made. The assessee-trust, also moved an application for exemption under section 80G of the Act.

2.3 For the assessment year 1934-85 return was filed on 21-8-1984. Assessment was completed on 19-3-1987 under section 143(3). Assessee claimed exemption under section 11 of the Act. In the return it reflected receipts of Rs. 32,486. Exemption under section 11 was allowed. CIT found assessment erroneous and prejudicial to the interest of Revenue. Therefore, he assumed jurisdiction under section 263 on the ground that the objects and purpose of the trust were not wholly charitable as such the donations received by the trust was exigible to tax. The assessment order was set aside and restored it to the file of the Assessing Officer for framing de novo assessment.

2.4 The Assessing Officer examined the facts. It was found that only two rooms in the building owned by the Trust were being used for public purposes. Later on these rooms were encroached upon by political parties, and Civil Defence authorities. Eviction suit was not filed. These rooms were occupied adversely. The area of the rooms was under illegal possession. Trust was not in a position to collect rent from them. Besides, the assessee did not incur expenditure on activities rclatable to the object of the Trust. Relying on the order in context of exemption claimed under section 80G, Assessing Officer held that the assessee trust was not a charitable trust. The amount of donation was not used for the furtherance of the objects of the trust. As such, he denied the benefit claimed under section 11 of the Act. CIT (Appeals) reversed the order of the Assessing Officer. Bring aggrieved, Revenue filed appeal before us.

3. Shri Abhay Tayal, the learned Departmental Representative, appeared before us. It was vehemently contended that the objects of the trust were not charitable. As such, the assessee is not entitled to claim the benefit of section 11 of the Act. Our attention was invited on the Memorandum of Association and Rules. It was submitted that the objects are entirely different from each other. It was submitted that the Assessing Officer examined the genuineness of the purpose by analysing the activities of the trust. It was found that the trust was created to promote politics and not for public charily.

5.9 Similarly just because 12-A registration is granted to the assessee, it cannot be presumed that the assessee trust is a charitable trust. It transpires from the reading of section 12-A that at the stage of filing an application for registration under section 12-A, the CIT is not supposed to examine the application of income aspect. All that he may examine is whether the application is made in accordance with the requirements of section 12-A read with rule 17-A and whether Form No. 10-A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At this stage, it is not a sine qua non to examine the application aspect of income. .