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(b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality. ...

"8. It is seen that, the Ld. CIT(E) had invoked Explanation (e)(i) of Section 12A(1)(ac)(iii) of the Act and held that the activities of the assessee trust were not genuine. According to us, the Ld. CIT(E)'s interpretation of the Explanation (e)(i) of Section 12A(1)(ac)(iii) suffered from fundamental infirmity. If the activities of a charitable trust are yet to commence, it cannot be straight away alleged that the activities are not genuine. So long as the proposed activities of the assessee trust to achieve its objects are found to be charitable in nature, mere noncommencement of the activities at the time of filing of application or at the time of passing of order for grant of registration u/s 12AB of the Act, cannot be treated as a 'specified violation' to deny registration to an assessee. In our view, where the assessee trust demonstrates that it has been formed for charitable objects and shows that the proposed activities are charitable in nature, then the conditions prescribed in Section 12AB cannot be said to be not satisfied. If in the facts and circumstances of the given case, the assessee is able to show that it had carried out charitable activities in the subsequent years, the same is required to be considered by the Ld. CIT(E) to satisfy himself about the genuineness of the activities and it is unjustified on his part to reject the application only because the activities did not commence at the time of filing of application/ passing of the order. Our view finds support from the decision of the Hon'ble Supreme Court in the case of Ananda Social and Educational Trust vs CIT (426 ITR 340)wherein it was held as under:-

12. We also find that, none of the activities undertaken by the assessee trust relating to acquisition of land or which was undertaken subsequently involving conversion of land usage, expending for charitable purposes, can be regarded as non-genuine or contrary to the objects for which the assessee trust was formed. There is also merit in the submission of the Ld. AR that, once the registration is in place, then it would give impetus to the assessee trust to pursue its charitable objects by obtaining patronage from the public at large. Unless the registration is granted, the educational institution, the activities of the assessee trust got stalled. It was in 2022, when there was a change in trustees, whereby Mrs. D Sindhu, a young medical professional, Mrs. M Jayakumari, teacher by profession having several years of experience and Mr. D Harish Kumar, an engineering professional, came on board, that the trust recommenced the activities, applied for conversion of land in 2023, obtained approval in 2026 etc. The assessee is thus noted to have demonstrated that it had indeed undertaken activities towards achievement of its charitable objects. Having taken note of these facts, we hold that the Ld. CIT(E) was unjustified in holding that the assessee trust did not undertake any activity whatsoever, particularly when the contemporaneous facts show that the assessee trust had acquired land parcels for setting up medical educational institution.

M/s. Live Surge Medical & Research Trust :- 13 -:

12. We also find that, none of the activities undertaken by the assessee trust relating to acquisition of land or which was undertaken subsequently involving conversion of land usage, expending for charitable purposes, can be regarded as non-genuine or contrary to the objects for which the assessee trust was formed. There is also merit in the submission of the Ld. AR that, once the registration is in place, then it would give impetus to the assessee trust to pursue its charitable objects by obtaining patronage from the public at large. Unless the registration is granted, the Ld. AR submitted that the assessee was unable to carry out the proposed activities as the donors required valid registrations under the Act so as to be associated and involved with the assessee trust. To demonstrate the same, the Ld. AR showed us that once the provisional registration was received, the assessee trust had received corpus donations in FYs 202425 and FY 2025-26, which assisted in furtherance of the objects of the assessee trust.

7. We have heard the parties, and perused the material available on record. The Coordinate Bench in the case of Sir CV Raman Education & Charitable Trust (supra) has laid down the ratio that for the purpose of registration u/s. 12 AB of the Act, the CIT(E) is required to also consider the proposed activities of the trust as to whether they are of charitable in nature. The Coordinate Bench has further laid down the ratio that merely because the assessee did not commence the activities cannot be the reason for denial of registration unless the CIT(E) is able to establish that the assessee is engaged in activities which are considered as "specified violations" for the purposes of registration u/s. 12AB of the Act. From the perusal of the objects as stated in the main object of the trust it is clear that the assessee trust is established for charitable purposes. Further clause(ix) of the trust deed provides that in the event the assessee trust is unable to function in fulfilment of the objects after discharging all the liabilities the trustees shall transfer the assets of the trust to any public charitable institutions or institutions having similar objects. We further notice that the assessee for the year under 31.03.2025 has conducted a conference which according to the Ld. AR is for sharing of knowledge and best practices in the medical field which would ultimately benefit the public at large. Therefore, we see merit in the argument of the Ld. AR that merely based on the reason that the assessee has conducted a medical conference M/s. Live Surge Medical & Research Trust :- 16 -: