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It is evident that at this stage, the Commissioner is not to examine the application of income. All that he may examine is whether the application is made in accordance with the requirements of section 12A read with rule 17 A and whether Form 10A 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 proper to examine the application of income. "

The Hon'ble ITAT, Kolkata in the case of Maa Kamakhya Narmadeshwar Educational Charitable Trust vs. CIT(E), ITA Nos. 355 & 356/Kol/2017 held the following:

"10. The propositions of law laid down in the above case laws demonstrate that the Id. CIT(Exemptions) can refuse the registration of a trust of institution u/s 12AA of the Act only when (a) he should be satisfied that the objects of the trust or institution are not charitable in nature or he finds that the activities of the trust of institution are not genuine. "

In view of the above it stands crystal clear that even on the basis of charitable objects, a trust can be registered u/s 12AA of the Income Tax Act, 1961. Therefore the Ld. CIT(E) having considered the appellant's objectives as charitable, registration u/s 12AA of the Income Tax Act, 1961 should have been granted to the appellant by him.

"Applicability of section 13(1)(c) cannot be looked into at the time of registration but CIT is to look into whether the objects of the trust are charitable or not. Whether the assessee is entitled for exemption u/s 11 or whether there is default of section 13 has to be looked into at the time of framing assessment." (para 5.10 at pages 42 and 43 of the Order, page 281 of the paper book).
Herein the appellant would like to submit that the Hon'ble ITAT, Delhi in the case of Aggarwal Mitra Mandal Trust vs. DIT(E). New Delhi reported in [2007] 293 ITR 259 (ITAT[Del]) held that while granting registration under section 12A of the Act, the CIT is to satisfy himself about the genuineness of activities and objects of the trust and as such, the scope of his powers was limited in this regard to make such enquiries as he deemed to, in respect of these two aspects and that if the Commissioner had not doubted the genuineness of the activities of the trust, he could not refuse the grant of registration under section 12A of the Act. It was held that the provisions of section 13(1) of the Act would be applied or invoked only at the time of computation of total income of the previous year of the person who was claiming deduction under section 11 or 12 of the Act, by the Assessing Officer and not by the CIT, while considering the application for registration under section 12A of the Act.

Further, the Hon‟ble Allahabad High Court Fifth Generation Education Society Vs. CIT, [1990] 185 ITR 634 (All), held as under :-

"A reading of section 12A of the Income-tax Act, 1961, shows that registration under the section is a precondition for availing of the benefit under sections 11 and 12. Section 11 provides for exemption of income which is applied for charitable purposes. Section 12 is in the nature of an Explanation to section 11. Before a person can claim the benefit of section 11 or section 12, as the case may be, he must obtain registration under section 12A. The application for registration under section 12A has to be made in Form No. 10A prescribed by rule 17A of the Income-tax Rules, 1962, before the expiry of one year from the date of creation of the trust or the establishment of the institution, whichever is later. It has to be made by the person in receipt of the income of the trust. At that stage, the Commissioner is not required to examine the application of income. All that he may examine is whether the application is made in accordance with the requirements of section 12A read with rule 17A of the Income-tax Rules, 1962, and whether Form No. 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not.."