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11. Ld. Counsel further informed that after the demise of Sh. Sudershan Kumar Malik on 11.02.2105, the property itself was trespassed, usurped and the property deeds were forged and manipulated for sale by some miscreants. It was only after settlement of all Court cases in this behalf in July 2017 that the property came to the hands of the Trustee for sale. Immediately after the sale of the property carried out in terms of order dated 04.07.2019 of Hon'ble Delhi High Court in CS(OS) 119/2019 under Charitable and Religious Trusts Act, 1920, the entire sale consideration was placed with the Trust for the pursuit of its activities and sole Trustee Sh. Sharad Malik. In this connection the sole Trustee had filed affidavit dated 19.12.2019 before Hon'ble Delhi High Court regarding utilisation of sale proceeds for charitable objects of the Trust. Ld. Counsel has placed the sale deed and the Affidavit on record.

12. As to the other objection of the Ld. CIT(E) of the Trust not carrying out substantial activities after its incorporation the Ld. Counsel submitted that the activities as carried on were commensurate with the modest funds available with the Trust. It was further stated that any Trust is permitted by law to donate monies for promoting the activities of any other like Trust. Such donations to approved Trusts are treated as application of the income of the Trust exigible to exemption.

13. Our attention was drawn to the decision of the Apex Court in Anand Social Educational Trust Vs. CIT & Ors. (2020) 426 ITR 340 (SC), wherein the Hon'ble Court had ruled that a newly formed Trust could be registered even though no activities had been carried out by it. Adverting to the decision in the case of DIT Vs. Foundation of Ophthalmic & Optometric Education Research Centre (2013) 355 ITR 361. Ld. Counsel submitted that the non- commencement of charitable activities by the Trust was no justification for the authorities to reject the claim for registration. Ld. Counsel also relied upon the decisions of the Karnataka High Court in Sanjeevamma Hanumanthe Gowda Charitable Trust Vs. Director of Income-tax (Exemptions) (2006) 285 ITR 327 (Kar) and of the Punjab and Haryana High Court in CIT Vs. Surya Educational and Charitable Trust (2013) 355 ITR 280 (P&H) to submit that if the objects envisaged by a Trust were charitable in nature registration could not be refused by the Commissioner on grounds of charitable activities not having been conducted by the Trust.

14. Ld. Counsel urged that the several objectives envisioned by the Trust were purely charitable and Hon'ble Delhi High Court had also passed orders for sale of Trust property under the Charitable and Religious Trusts Act, 1920 after considering those objectives. The Ld. CIT (E) had not made any adverse comments on any of these aspects in the impugned order. Being so, the refusal to register the Trust on the alleged violation of Section 13(1)(c) r/w Section 13(3) of the Act and also on the impression that the genuineness of the activities were not being satisfactorily explained were both wrong. Since the Trust had thus been wrongly refused registration u/s 12AA of the Act he pleaded for directions to the Ld. CIT (E) to grant registration to the Trust u/s 12A of the Act.

21. As to the other objection of the CIT (E) of the Trust not having carried out charitable activities during the period of its existence it needs to be appreciated that any Trust can pursue its activities only if it has funds. The funds came to the possession of the Trust after sale of the property at Shanti Niketan. The apex Court and the High Court of Delhi, Punjab and Haryana, Karnataka have all appreciated this practical aspect of the matter. The apex Court has ruled in Anand Educational Trust vs. CIT & Ors. (Supra) that a newly formed Trust can be registered even though no activities had been carried out by it in the interregnum period. What is essential is that the objects of the Trust are charitable and its activities, if any, are genuine. The activities of the Trust as stated in the Trust Deed fall duly under the definition of Charity as provided u/s 2(15) of the Act. There is no material on record to betray the genuineness of the Trust activities. In point of fact the Trust has with its modest resources donated a sum of Rs. 1,00,000/- to another Trust which is not only registered under the Income-tax Act, 1961 but is also registered under the FCRA. Donations so made testify to the genuineness of the Trust. Moreover, the property of the Trust was sold under orders passed by the Hon'ble Delhi High Court while exercising powers under the Charitable and Religious Trusts Act, 1920, thus treating the Trust as a charitable Trust and also directing utilisation of sale proceeds for charitable objectives of Trust. In this manner the objection as raised by the Ld. CIT (E) on the absence of any significant charitable activities is without merit.