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J.B.S. Shikshan Sanstha, Kota vs. CIT (Exemptions), Jaipur . The Allahabad High Court in the case of Fifth Generation Education Society ((185 ITR 634), PB pg157-159) also had opined on the issue. The Court, while considering the provisions of registration of trust/institution u/s. 12A of the Act relating to assessment years prior to Finance (No. 2) Act, 1996, held that at the time of considering the application for grant of registration u/s. 12A, the CIT was not required to examine the application of income or carrying on of any activity by the trust. The Court further held that the CIT may at this stage examine whether the application was made in accordance with the requirements of section 12A r.w. Rule 17A, Form 10A was properly filled, along with determination of whether the objects of the trust were charitable or not.

Similar views have been given by following other High Courts

(i) Hon'ble Delhi High Court in the case of Director of Income Tax Vs Foundation of Ophthalmic & Optometry Research Education Centre (2013) 355 ITR 0361 (PB pg 160-166)

(ii) Hon'ble Karnataka High Court in the case of Director of Income Tax (Exemption) Vs Meenakshi Amma Endowment Trust (2013) 354 ITR 0219.

ITAT Jaipur Bench in the case of Career Point Education Society ITA No 709/JP/2014 order dated 04/12/2015 (copy at PB pg 132-135) wherein Hon'ble ITAT has held that "5. We have heard the rival contentions of both the parties and perused the material available on the record. The assessee had filed application in Form No. 10A alongwith required details. The society is registered from 7 ITA No. 709/JP/2014 Career Point Education Society Vs. CIT 1998 under the Societies Registration Act. The copy of the society are charitable and activity are genuine. At the time of registration of Trust/Institution, the ld CIT is to be judged the object of the Trust, which should be charitable in nature as the assessee is imparting the education programme through college and school education programme and he also provided various charitable services to the society as per object of the Trust. The case laws relied by the assessee are squarely applicable in the case of the assessee, accordingly, order of the ld CIT is set aside the directed to grant registration from the financial year 2012-13 as per application filed in the Form 10A."

1- laLFkk }kjk f'k{kk rFkk Kku dk izpkj o izlkj djukA 2- 'kkjhfjd o lkekftd fodkl ds fo"k; esa tkudkjh iznku djukA 3- Hkkjrh; lH;rk o laLd`fr dk fodkl djukA 4- /keZ fujis{krk ds izfr lkdkjkRed n`f"Vdks.k fodflr djukA 5- lekt lsok ds izfr bPNk "fDr tkx`r djukA 6- lkekftd dkS'ky ls tqMu+ kA 7- f'k{kk o Lojkstxkj dh vko';drkvksa o rR~lEcfU/k izfrfØ;kvksa dh fn'kk esa ;ksxnku djukA 8- lHkh oxkZas fo'ks"kr% fiNM+s o lk/kughu oxksZ dks 'kS{kf.kd o 9- [ksyksa ds izfr :>ku o [ksyksa ds Lrj dks c<+kus esa ;ksxnku djukA 10- lkekftd dqjhfr;ksa ds izfr psruk tkx`r djukA It is also noted from the trust deed that at the time of dissolution of the trust, the movable and immovable property of the assessee society would be vested into trust who has similar objects and will not be disputed among the settler of the Trust. It is further noted that the ld. CIT(E) had rejected the registration of assessee society u/s 12AA of the Act on the ground that the assessee society was paying rent to Gopal Bai Foundation J.B.S. Shikshan Sanstha, Kota vs. CIT (Exemptions), Jaipur . Trust, Kota (leased land) and rent to M/s. Career Point Ltd. (on leased bulding) for running the education institution. It is noted that the assessee trust had required the land as well as building to provide the education for students. It is further noted that if any unreasonable rent/ fee is being paid by the assessee then it can be examined by the Assessing Officer at the time of assessment. The ld. AR during the course of prayed that the institution is running classes from 6th to 12th standards and providing education to them. Thus the objects of the trust are charitable and there is no reason before the ld. CIT(E) that activities carryout by the assessee are not genuine. On perusal of the order of the ld. CIT(Exemptions), it is also observed that he has not given any finding about the object of the society whether any aims and objects are not charitable in nature. It is noted that Hon'ble Allahabad High Court in the case of Fifth General Education Society vs. CIT , 185 ITR 634 had also opined that at the time of considering the application for grant of registration u/s 12A, the ld. CIT was not required to examine the application of income or carrying on of any activity by the trust. The Court further held that the CIT may at this stage examine whether the application was made in accordance with the requirement of Section 12A r.w.rule 17A, and Form 10A was properly filled alongwith the determination whether the objects of the trust were J.B.S. Shikshan Sanstha, Kota vs. CIT (Exemptions), Jaipur . charitable or not. It is also observed that Hon'ble Delhi High Court in the case of Director of Income Tax vs. Foundation of Ophthalmic and Optometry Research Education Centre (2013) 355 ITR 361 held as under:-

DIRECTOR OF INCOME-TAX (EXEMPTIONS) v. MEENAKSHI AMMA ENDOWMENT TRUST [2013] 354 ITR 219 (Karn) followed.'' Further, the ITAT Jaipur Bench vide its order dated 4-12-2015 in ITA No. 709/JP/2014 in the case of Career Point Education Society vs. CIT, Kota observed as under:-

''5. We have heard the rival contentions of both the parties and perused the material available on the record. The assessee had filed application in Form No. 10A J.B.S. Shikshan Sanstha, Kota vs. CIT (Exemptions), Jaipur . alongwith required details. The society is registered from 1998 under the Societies Registration Act. The copy of the society are charitable and activity are genuine. At the time of registration of trust/ institution, the ld. CIT is to be judged the object of the trust which should be charitable in nature as the assessee is imparting the education programme through college and school education programme and he also provided various charitable services to the society as per object of the trust. The case laws relied by the assessee are squarely applicable in the case of the assessee, accordingly order of the ld. CIT(A) is set aside and directed to grant registration from the financial year 2012-12 as per application filed in form 10A.