Gouri Shankar Sewa Dal, Chandigarh v. CIT II, Chandigarh

ITA 1186/CHANDI/2012 | misc
Pronouncement Date: 30-04-2014 | Result: Allowed

Appeal Details

RSA Number 118621514 RSA 2012
Assessee PAN AABAG0304R
Bench Chandigarh
Appeal Number ITA 1186/CHANDI/2012
Duration Of Justice 1 year(s) 5 month(s) 18 day(s)
Appellant Gouri Shankar Sewa Dal, Chandigarh
Respondent CIT II, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 30-04-2014
Date Of Final Hearing 01-04-2014
Next Hearing Date 01-04-2014
Assessment Year misc
Appeal Filed On 12-11-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA JUDICIAL MEMBER ITA NO.1186/CHD/2012 (UNDER S ECTION 12AA ) GAURI SHANKAR SEWA DAL VS THE COMMISSIONER OF IN COME TAX-II # 3118 SECTOR 44 CHANDIGARH. CHANDIGARH. PAN : AABAG0304R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : DR. AMARVEER SINGH DATE OF HEARING : 03.04.2014 DATE OF PRONOUNCEMENT : 30.04.2014 O R D E R PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-II CHANDIGARH DATED 29. 07.2012 AGAINST THE ORDER PASSED UNDER SECTION 12AA OF THE INCOME-TAX ACT 1961 ( 'THE ACT' FOR SHORT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRED I N LAW AS WELL AS ON FACTS IN REJECTING REGISTRATION U NDER SECTION 12AA OF THE ACT WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRED I N OBSERVING THAT ACTIVITIES OF THE SOCIETY DO NOT QUA LIFY IN THE NATURE OF CHARITY WITHIN THE MEANING OF SECTION 2(1 5) OF THE ACT WHICH IS UNFOUNDED WITHOUT ANY BASIS AND AS SU CH THE ORDER IS ARBITRARY AND UNJUSTIFIED. 3. THAT THE REGISTRATION HA BEEN REFUSED ONLY ON THE BASIS OF SUSPICION CONJECTURES AND SURMISES WHICH IS NOT PERMITTED UNDER THE LAW AND AS SUCH THE ORDER REFUSING REGIST RATION IS ILLEGAL ARBITRARY AND UNJUSTIFIED. 2 4. THE PRESENT APPEAL IS FILED BEFORE THE TRIBUN AL AFTER A DELAY OF 34 DAYS. THE ASSESSEE HAS MOVED AN APPLICATION F OR CONDONATION OF DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL A LONGWITH AN AFFIDAVIT OF THE CONCERNED ADVOCATE. THE PLEA OF T HE ASSESSEE WAS THAT THE ORDER OF COMMISSIONER OF INCOME TAX WAS RE CEIVED ON 10.08.2012 AND THE APPEAL WAS DUE TO BE FILED BEFOR E THE TRIBUNAL ON 09.10.2012 WHEREAS THE SAME WAS FILED ON 12.11.2 012 I.E. AFTER A DELAY OF 34 DAYS. THE PLEA OF THE ASSESSEE IN THIS REGARD WAS THAT ALL THE RELEVANT PAPERS IN FURNISHING THE APPEAL WE RE HANDED OVER TO THE COUNSEL SHRI VIJAY MEHRA WHO HAD MISPLACED THE SAME AND THE APPEAL WAS NOT FILED IN TIME. THE AFFIDAVIT OF THE THEN COUNSEL SHRI VIJAY MEHRA HAS ALSO BEEN FILED IN WHICH HE ADMITTE D THAT HIS OFFICE HAD MISPLACED FILE AS THE SAME WAS TAGGED WITH ANOT HER FILE AND IT CAME TO HIS KNOWLEDGE ONLY WHEN THE ASSESSEE ASKED FOR THE SAME. IN THE TOTALITY OF THE ABOVESAID FACTS AND CIRCUMST ANCES WE FIND MERIT IN THE PLEA OF THE ASSESSEE AND THE DELAY IN FILING THE PRESENT APPEAL BY 34 DAYS IS HEREBY CONDONED AND WE PROCEED TO DECIDE THE PRESENT APPEAL ON MERITS. 5. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST DENIAL OF REGISTRATION UNDER SECTION 12AA OF THE ACT. THE COM MISSIONER OF INCOME TAX-II CHANDIGARH NOTED THAT THE AIMS AND O BJECTS OF THE ASSESSEE SOCIETY WERE CONSTRUCTION AND MAINTENANCE OF RELIGIOUS PLACES DEVOTED TO LORD SHIVA TO ORGANIZE PILGRIMAG ES COMMUNITY KITCHENS RELIGIOUS FUNCTIONS LIKE RAM LEELA CELEB RATION OF FESTIVALS ETC. THE COMMISSIONER OF INCOME TAX FURT HER NOTED THAT THE ORGANIZATION IS PRIMARILY ENGAGED IN ORGANIZING BHANDARA I.E. COMMUNITY KITCHEN/FREE PROVISION OF FOOD TO PILGRIM S ON THEIR WAY TO AMARNATH SHRINE. THIS ACTIVITY ALONE CONSUMED M AJOR PART OF 3 RECEIPTS OF THE ORGANIZATION. OTHER MAJOR EXPENSES INCURRED WERE TOWARDS TRAVELING PRINTING WELFARE EXPENSES ETC. DURING THE FINANCIAL YEAR 2009-10 THE ASSESSEE HAD RECEIVED R S.1.46 LACS IN DONATION AND DURING THE FINANCIAL YEAR 2010-11 THE ASSESSEE HAD RECEIVED RS. 25.14 LACS IN DONATION. THE EXPENSES O N BHANDARA HAD INCREASED FROM RS. 70 000/- TO OVER RS. 17 LACS APPROXIMATELY. THE FIXED ASSETS OWNED BY THE ASSESSEE SOCIETY INCL UDED AN AMBULANCE AT VALUE OF RS.55 000/- AND GENERATOR SET AND LCD TV. IN RESPECT OF THE BHANDARA CARRIED ON BY THE ASSE SSEE THE COMMISSIONER OF INCOME TAX HELD THAT SUCH ACTIVITY COULD BE CONSIDERED TO HAVE BEEN CARRIED ON BY THE SOCIETY. HOWEVER THE ACTIVITY BEING CARRIED ON BY THE ASSESSEE BEING EVE NTS SPECIFIC AS PER THE COMMISSIONER OF INCOME TAX DID NOT QUALIFY AS A STABLE ON- GOING ACTIVITY IN THE NATURE OF CHARITY WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. THE COMMISSIONER OF INCOME TAX FU RTHER NOTED THAT THE AMARNATH YATRA WAS AN ANNUAL EVENT WHEREIN THE STATE GOVERNMENT AGENCIES AS WELL AS INDIAN ARMY WERE HAV ING AN ORGANIZATIONAL ROLE AND THE ASSESSEE WAS ONE OF THE VOLUNTARY ENTITY WHICH CLAIMS TO CONTRIBUTE FREE FOOD/PROVISION TO T HE PARTICIPANTS OF YATRA. THE ASSESSEE WAS NOT CARRYING ON THIS ACTIV ITY FROM ANY ESTABLISHED PREMISES. FURTHER THE WELFARE EXPENSE S OF RS. 2.20 LACS INCURRED BY THE ASSESSEE SOCIETY ON PERFORMANCE OF LAST RITES OF ONE SHRI GURDIAL SINGH WAS HELD BY THE COMMISSIONER OF INCOME TAX TO HELP FAMILY OF ONE PARTICULAR INDIVIDUAL WHICH INDI CATED THAT HE WAS SOMEHOW RELATED TO ONE OF THE MEMBERS OF THE SOCIET Y WHICH IN-TURN ATTRACTS THE PROVISIONS OF SECTION 13(1)(C)(II) REA D WITH SECTION 13(III) OF THE ACT. THE COMMISSIONER OF INCOME TAX DENIED THE REGISTRATION UNDER SECTION 12AA OF THE ACT HOLDING AS UNDER : 4 IN CONCLUSION THE ACTIVITIES OF THE SOCIETY ARE N OT OF A PERENNIAL NATURE SERVING ANY LONG TERM PUBLIC GOO D FOR WHICH REGISTRATION UNDER SECTION 12AA OF THE AC T IS REQUIRED. THE SCOPE AND EXTENT OF THE ACTIVITIES CARRIED OUT BY THE SOCIETY ARE VERY LIMITED AND SEASONAL THEREFORE THEY DO NOT QUALIFY THE SOCIETY TO BE ELIGIBLE FOR EXEMPTION OF INCOME AND REGISTRATIO N UNDER SECTION 12AA OF THE ACT. THUS AT THIS STAGE REGISTRATION UNDER SECTION 12AA OF THE ACT CANNOT B E GRANTED AND THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT IS HEREB Y REJECTED. 6. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF C OMMISSIONER OF INCOME TAX. 7. THE LD. AR FOR THE ASSESSEE TOOK US THROUGH AIMS AND OBJECTS OF THE ASSESSEE TRUST AND POINTED OUT THAT VARIOUS OBJECTS WERE BEING CARRIED ON BY THE ASSESSEE SOCIETY WHICH WERE ALL IN THE NATURE OF CHARITABLE ACTIVITIES AND MERELY BECAUSE SOME OF THE ACTIVITIES WERE BEING CARRIED OUT BY THE ASSESSEE FROM NON-EST ABLISHED PLACE DOES NOT MERIT THE REJECTION OF THE REGISTRATION UN DER SECTION 12AA OF THE ACT AS THAT WAS NOT THE REQUIREMENT OF THE S ECTION. IT WAS FURTHER POINTED OUT BY THE LD. AR FOR THE ASSESSEE THAT THE REGISTRATION UNDER SECTION 12A OF THE ACT HAS BEEN DENIED TO THE ASSESSEE ON MERE SURMISES. THE ASSESSEE IS NOT REL ATED TO THE FAMILY OR THE PERSON WHOSE BODY WAS TRANSPORTED. THE LD. A R FOR THE ASSESSEE FURTHER PLACED RELIANCE ON THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT ON CIT VS DAWOODI BOHARA JAMA T 43 TAXMAN 243 (S.C) FOR THE PROPOSITION THAT EVEN IF T HE ACTIVITIES WERE RELIGIOUS IN NATURE THE REGISTRATION UNDER SE CTION 12A OF THE ACT WAS TO BE ALLOWED TO THE ASSESSEE. 8. THE LD. DR FOR THE REVENUE PLACED RELIANCE ON TH E ORDER OF THE COMMISSIONER OF INCOME TAX. 5 9. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE SOCIETY WAS REGISTERED WITH THE REGIST RAR OF FIRMS & SOCIETIES ON 21.01.2010 VIDE REGISTRATION NO. 4074 OF 2010. THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION UNDE R SECTION 12AA OF THE ACT ON 11.01.2012 BEFORE THE COMMISSIONER OF IN COME TAX-II CHANDIGARH. THE AIMS AND OBJECTS OF THE ASSESSEE S OCIETY WERE AS UNDER : 1) TO CREATE A SENSE OF BROTHERHOOD HUMANITY COOPERA TION MUTUAL HARMONY LOVE AND AFFECTION AMONGST THE MEMB ERS OF THE DAL AND ALSO AMONGST THE GENERAL PUBLIC. 2) TO TAKE OVER ERECT CONSTRUCTION ALTER MAINTAIN IMPROVE DEVELOP MANAGE AND CONTROL AN ASHRAM DHARMSHA LA TEMPLE/MANDIR PIOUS AND OTHER RELIGIOUS INSTIT UTIONS IN THE NAME OF LORD SHIVA. 3) TO PERMIT WORSHIP TO BE CARRIED OUT AT THE SHRI NES OF LORD SHIVA UNDER THE CONTROL OF THE DAL AND PROVIDE ALL KINDS OF WORSHIP MATERIALS AND REQUIRED FACILITIES FOR THE D EVOTIES. 4) TO ENGAGE AND EMPLOY PRIESTS FOR PERFORMING PRAY ERS ON SUCH SALARIES AS THE DAL MAY DEEM FIT AND EVEN SUSP END OR REMOVE THEM IF NECESSARY AND APPOINT OTHERS TO PERF ORM THE PRAYERS. 5) TO ORGANISE VARIOUS RELIGIOUS FACTIONS LI KE SANKEERTAN JAGRAN SATSANG RAMLEELA KRISHANLEELA RAMCHA RIT MANAS PATH SHIVRATRI AND OTHER SIMILAR FUNCTIONS FROM TIME TO TIME AS AND WHEN GOVERNING BODY OF THE DAL MAY DECIDE. 6) TO ESTABLISH MAINTAIN MANAGE AND CONTROL THE SHEL TERS FOR THE USE OF DEVOTEES DURING FESTIVALS RELIGIOUS FUNC TIONS MELAS ETC. 7) TO ORGANISE TIRATH YATRAS TO VARIOUS SHRINES OF THE LORD SHIVA & OTHER RELIGIOUS PLACES.TO ARRANGE AND ORGAN IZE BHANDARA/LANGAR ON DIFFERENCE OCCASIONS AS WHEN THE /GOVERNING BODY OF THE DAL MAY DECIDE. 8) TO ORGANIZE BLOOD DONATION EYE AND FREE MEDICAL CA MPS FOR THE POORER SECTION OF THE SOCIETY. 9) TO RENDER ALL POSSIBLE HELP IN CASE OF ANY NATURAL CALAMITY E.G. EARTH QUAKE FLASH FLOODS FAMINE OR IN CASE OF ANY OTHER EMERGENCY. 10. TO RENDER ALL POSSIBLE HELP IN CASE OF ANY N ATURAL CALAMITY E.G. EARTH QUAKE FLASH FLOODS FAMINE OR IN CASE O F ANY OTHER EMERGENCY. 10. THE CLAIM OF THE ASSESSEE FOR GRANT OF REGISTRA TION UNDER SECTION 12A OF THE ACT WAS THAT IT WAS A CHARITABLE NON-PROFIT ORGANIZATION WORKING TO CREATE A SENSE OF BROTHERH OOD HUMANITY 6 AND COMMUNAL HARMONY AND EQUALITY AMONG GENERAL PUB LIC. THE ASSESSEE WAS ORGANIZING FREE OF COST BHANDARA AND ALSO ORGANIZING BLOOD DONATION CAMPS MASS-MARRIAGES ETC. THE ASSES SEE WAS ESTABLISHING KITCHEN AT THE BASE CAMP AND WAS PROVI DING LANGARS TO THE PERSONS EN-ROUTE TO SHRI AMARNATH SHRINE. THE B HANDARA EXPENSES WERE THUS BOOKED AS AN EXPENDITURE BEING RELATABLE TO THE ACTIVITIES CARRIED ON BY THE ASSESSEE. FURTHER EXPE NDITURE IN RELATION TO TRAVELING FOR SETTING UP BASE CAMP AND OTHER WEL FARE EXPENSES WERE BEING CARRIED OUT BY THE ASSESSEE. THE ASSESSE E CLAIMS TO HAVE ALSO ESTABLISHED A BLOOD DONATION CAMP. IN ADDITIO N THE ASSESSEE CLAIMS THAT IT HAD TRANSPORTED THE BODY OF ONE OF T HE DECEASED ON WAY TO SHRI AMARNATH SHRINE AND HAD ARRANGED TRANSP ORTATION OF HIS BODY FROM SHRINE TO HIS HOME-TOWN AND ALSO HAD MADE CERTAIN CONTRIBUTIONS FOR THE WELFARE OF HIS FAMILY. THE A SSESSEE CLAIMS THAT IT WAS CARRYING OUT ALL THESE WELFARE ACTIVITI ES AND WAS ENTITLED TO REGISTRATION UNDER SECTION 12AA OF THE ACT. 11. THE ISSUE ARISING IN THE PRESENT APPEAL IS REGI STRATION ALLOWABLE TO A TRUST UNDER SECTION 12AA OF THE ACT. IN ORDER TO AVAIL THE BENEFIT OF DEDUCTION UNDER SECTION 11 AND 12 OF THE ACT IT IS MANDATORY THAT THE TRUST OR ORGANIZATION SHOULD BE REGISTERED BY WAY OF FILING APPLICATION UNDER SECTION 12A OF THE ACT CONSEQUENT TO WHICH THE CIT ON BEING SATISFIED THAT THE ACTIVITIE S OF THE TRUST ARE CHARITABLE AND ARE GENUINE SHALL PASS AN ORDER REGI STERING THE TRUST UNDER SECTION 12AA OF THE ACT. 12. THE SCOPE OF POWERS OF THE CIT FOR REGISTRATION OF TRUST (SUPRA) U/S 12AA HAS BEEN ELABORATED UPON BY THE PU NJAB & HARYANA HIGH COURT IN CIT- II CHANDIGARH VS. SURYA EDUCATIONAL 7 & CHARITABLE TRUST (203 TAXMAN 53 (P&H) WHEREIN IT HAS BEEN HELD AS UNDER : AS PER SECTION 12AA AN APPLICATION FOR REGISTRAT ION OF THE TRUST AND INSTITUTION IS REQUIRED TO BE MADE -WITHIN ONE YEAR FROM THE DATE OF CREATION OF THE TRUST OR THE ESTABLISHMENT OF SUCH INSTITUTION. THE PROCEDURE FOR REGISTRATION OF THE TRUST OR INSTITUT ION IS PRESCRIBED UNDER SECTION 12AA. IN TERMS OF CLAUSE (A) OF SECTI ON 12AA THE COMMISSIONER IS TO SATISFY HIMSELF ABOUT THE GENUIN ENESS OF THE ACTIVITIES OF THE TRUST ON SUCH INQUIRIES AS HE MA Y DEEM NECESSARY. SUB-SECTION (1A) AND (2) OF SECTION 12AA ARE PROCED URAL IN NATURE WHEREAS SUB-SECTION (3) OF SECTION 12AA EMPOWERS TH E COMMISSIONER TO CANCEL THE REGISTRATION OF THE TRUS T OR INSTITUTION IF HE IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST O R INSTITUTION ARE NOT GENUINE OR ARE NOT CARRIED OUT IN ACCORDANCE WITH T HE OBJECTS OF THE TRUST OR INSTITUTION. [PARA 8] SECTION 11 CONTEMPLATES THAT THE INCOME AS SPECIFIE D THEREIN SHALL NOT BE INCLUDED IN THE TOTAL INCOME OF THE PREVIOUS YEA R OF THE PERSON IN RECEIPT OF THE INCOME DERIVED FROM THE PROPERTY HEL D UNDER THE TRUST WHOLLY FOR CHARITABLE OR RELIGIOUS PURPOSES WHEREA S SECTION 12 DEALS WITH THE CONTRIBUTIONS RECEIVED BY THE TRUST OR AN INSTITUTION ESTABLISHED FOR CHARITABLE AND RELIGIOUS PURPOSES RECEIVING CONTRIBUTION SHALL NOT BE AN INCOME IN TERMS OF SE CTION 11. THE BENEFIT OF SECTIONS 11 AND 12 IS AVAILABLE ONLY IF SUCH TRUST OR INSTITUTION IS REGISTERED UNDER SECTION 12AA. [PARA 9] ON THE OTHER HAND THE PROVISIONS OF SECTION 10(23C ) ARE THE PROVISIONS OF THE ACT IN SUBSTITUTION OF THE EARLIE R PROVISIONS OF SECTION 10(22) AS TO WHICH INCOME SHALL NOT BE INCL UDED IN COMPUTING THE TOTAL INCOME OF ANY PERSON. THEREFORE THE PROVISIONS OF SECTIONS 11 12 OR SECTION 10(23C) DE AL WITH THE INCOME OF A TRUST OR OF THE INSTITUTION AND THE CIR CUMSTANCES AS TO WHEN SUCH INCOME IS TO BE EXCLUDED FOR COMPUTING TH E TOTAL INCOME BUT THE BASIS OF SUCH BENEFIT IS THE REGIST RATION UNDER SECTION 12AA. UNLESS A TRUST OR INSTITUTION IS REGI STERED UNDER SECTION 12AA SUCH TRUST OR INSTITUTION SHALL NOT B E ENTITLED TO EXCLUDE FROM ITS TOTAL INCOME DEDUCTIONS OR CONTRI BUTIONS OR FROM OTHER SOURCES. THEREFORE THE PRINCIPLES LAID DOWN FOR EXCLUDING THE INCOME FROM CONSIDERATION UNDER SECTION 10(22) NOW 10(23)(C) OR SECTIONS 11 AND 12 ARE NOT APPLICABLE WHILE CONSIDERING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA. THE APPLICATION FOR REGISTRATION IS REQUIRED TO BE MADE WITHIN ONE YEAR OF THE CREATION OF THE TRUST. SECTION 12AA REQ UIRES SATISFACTION IN RESPECT OF THE GENUINENESS OF THE A CTIVITIES OF THE TRUST -WHICH INCLUDES THE ACTIVITIES WHICH THE TRU ST IS UNDERTAKING AT PRESENT AND ALSO WHICH IT MAY CONTEMPLATE TO UND ERTAKE. THE INSERTION OF SUB-SECTION (3) TO SECTION 12AA CLARIF IES THE SAID FACT WHEN IT EMPOWERS THE COMMISSIONER TO CANCEL THE REG ISTRATION IF THE ACTIVITIES OF THE TRUST ARE NOT CARRIED OUT IN ACCORDANCE WITH SUCH OBJECTS. [PARA 10] THEREFORE THE OBJECT OF SECTION 12AA IS TO EXAMINE THE GENUINENESS OF THE OBJECTS OF THE TRUST BUT NOT THE INCOME OF THE TRUST FOR CHARITABLE OR RELIGIOUS PURPOSES. THE STAGE FOR APP LICATION OF INCOME IS YET TO ARRIVE I.E. WHEN SUCH TRUST OR IN STITUTION FILES ITS RETURN. [PARA 11] 13. APPLYING THE PRINCIPLES LAID DOWN BY THE HON'BL E PUNJAB & HARYANA HIGH COURT IN SURYA EDUCATIONAL & CHARITABL E TRUST WE FIND THAT THE CIT WHILE GRANTING REGISTRATION U/S 1 2AA OF THE FACT IS 8 TO LOOK INTO THE OBJECTS OF THE TRUST AND WHETHER T HE TRUST IS CARRYING ON THE SAID OBJECTS OF THE TRUST. OBJECTS OF THE PRESENT ASSESSEE TRUST WERE IN THE LINE OF PROVIDING FACILI TIES TO THE DEVOTEES ON WAY TO SHRI AMARNATH SHRINE BY WAY OF O RGANIZING FREE OF COST BHANDARA AND ALSO DOING WELFARE ACTIVITIES BY WAY OF ORGANIZING BLOOD DONATION CAMPS. ETC. IN ADDITION THE ASSESSEE HAD ALSO TRANSPORTED THE BODY OF ONE OF THE DECEASED EN ROUTE TO SHRI AMARNATH SHRINE TO HIS HOME TOWN. ALL THESE ACTIVI TIES CARRIED OUT BY THE ASSESSEE WERE CHARITABLE ACTIVITIES AND IN T HE ABSENCE OF ANY EVIDENCE HAVING BEEN BROUGHT ON RECORD THAT THE SAI D ACTIVITIES OF THE ASSESSEE TRUST WERE NON-GENUINE THE SAID TRUST WAS ENTITLED TO REGISTRATION UNDER SECTION 12AA OF THE ACT. THE SAT ISFACTION OF CONDITIONS OF SEC. 11 TO 13 OF THE ACT IS TO BE GON E INTO BY ASSESSING OFFICER WHILE DETERMINING THE INCOME OF TRUST AT THE TIME OF ASSESSMENT AND NOT TO BE GONE INTO BY CIT WHILE GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT. THE CO MMISSIONER OF INCOME TAX HAD ACCEPTED THE ACTIVITY OF PROVIDING F REE OF COST BHANDARA AS ONE OF THE CHARITABLE ACTIVITIES BUT HA D DENIED THE REGISTRATION UNDER SECTION 12AA OF THE ACT TO THE A SSESSEE AS THE SAID ACTIVITY WAS BEING CARRIED OUT FROM ANY ESTABL ISHED PREMISES. WE FIND NO MERIT IN THE SAID OBSERVATION OF THE COM MISSIONER OF INCOME TAX AS IT IS NOT THE REQUIREMENT OF THE SECT ION THAT THE CHARITABLE ACTIVITIES IF ANY HAVE TO BE CARRIED OU T FROM ANY ESTABLISHED PREMISES. THE WELFARE ACTIVITIES PERFO RMED BY THE ASSESSEE ALSO ARE IN LINE WITH THE ACTIVITIES PRESC RIBED UNDER THE ACT AND THE ASSESSEE IS ENTITLED TO THE CLAIM OF REGIST RATION UNDER SECTION 12AA OF THE ACT. FURTHER THE EXPENDITURE INCURRED ON THE LAST RITES OF ONE OF THE DECEASED ON WAY TO THE SHR INE AND MONETARY HELP TO THE FAMILY CANNOT BE SAID TO ATTRACT THE PR OVISIONS OF SECTION 9 13(I)(C)(II) READ WITH SECTION 13(III) OF THE ACT A S THE SAID PERSON WAS NOT RELATED TO THE ASSESSEE. IN THE ABSENCE OF THE SAME WE FIND NO MERIT IN THE ORDER OF THE COMMISSIONER OF INCOME TAX IN REJECTING THE REGISTRATION UNDER SECTION 12AA OF TH E ACT. WE DIRECT THE COMMISSIONER OF INCOME TAX TO GRANT REGISTRATIO N UNDER SECTION 12AA OF THE ACT. THE GROUNDS OF APPEAL RAISED BY T HE ASSESSEE ARE THUS ALLOWED. 14. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL 2014. SD/- SD/- ( T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30 TH APRIL 2014 POONAM COPY TO: THE APPELLANT THE RESPONDENT THE CIT(A) THE CIT DR. ASSISTANT REGISTRAR ITA T CHD.