The primary requirement for granting the registration under section 12AA is that the objects of the trust shall be charitable; the distribution of uniform to the poor students and blanket to the patients are the activities of charitable nature; similarly, conducting an eye relief camp is also a charitable activity.
ITAT, LUCKNOW BENCH ‘B’ LUCKNOW
Baijnath Charitable and Educational Trust
ITA No. 331 & 332/Luc./08
September 24, 2009
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6.1 The primary requirement for granting the registration u/s 12AA is that the objects of the trust shall be charitable. In the instant case, the learned CIT asked the report from the Assessing Officer who furnished the report duly endorsed by the Addl. CIT and had recommended the case for registration which clearly shows that the Assessing Officer as well as Addl. CIT were of the opinion that her objects of the assessee trust are charitable in nature, so the primary condition was fulfilled. The learned CIT dented the registration by stating that the written submissions of the assessee vaguely mentioned about the activities but he did not comment upon the submissions of the assessee and also did not point out how the activities did not fulfill the objects of the assessee. It is also noticed from the record that the assessee had written a letter to learned CIT in response to the notice dated 20/2/2008. Copy of the said letter is available at page No. 42 and 43 of the assessee's compilation. In the said letter the assessee clearly indicated vide para % that although .the trust was only four months old however the trust has conducted an eye relief camp at Kanauj which started on 4/1/2008 and also conducted a camp to distribute the blankets to the patients. It was also pointed out that in the camp prominent persons of locality had participated. It is noticed that the assessee furnished the cash memo dated 20/1/2008 for blanket and uniform which is available at page No. 44 of the assessee's compilation. At page no. 45 to 49A, there are various photographs of blanket and uniform distribution and of the eye relief camp. The learned CIT nowhere stated that these photographs furnished by the assessee for distribution of the blankets and of medical eye relief camps are fake. No material is brought on record to substantiate that the assessee was not engaged in those activities. In our opinion, the distribution of uniform to the poor students and blanket to the patients are the activities of charitable nature. Similarly conducting an eye relief camp is also a charitable activity. In that view of the matter, it cannot be said that the assessee was not engaged in the charitable activities and this fact had not been denied by the Assessing Officer in his remand report which was duly endorsed by Addl. CIT.
7. In a similar issue, I.T.A.T. Amritsar Bench in the case of Malli Ram Charitable trust vs. Clt  260 ITR 118 (AT) [wherein one of us (AM) is the signatory has held as under:
"On a combined reading of section 12A of the income-tax Act, 1961, and rule 17 A of the income-tax Rules, 1962, it would be clear that the application for registration under section 12A has to be made in Form No. 10A prescribed by rule 17A of the Rules before the expiry of one year from the date of the creation of the trust or establishment of the institution whichever is later%. It has to be made by the person who is in receipt of\he income of the trust. The Commissioner of Income-tax is not required to examine the application of income. All that he may examine is whether the application is made in accordance with the-requirement of section 12A read with rule 17A of the Rules and whether Form No, 10A has been property filled up. He is further required to see as to-whether the objects of the trust are charitable or not. The fact that the trust is not registered with the Registrar of Societies or with the Registrar of Documents is not a ground for refusing registration”
8. In the instant case also the assessee furnished the application in form No. 10A which Is the primary requirement of section 12A of the I.T. Act, 1961 read with Rule 17A of the Income-tax Rules 1963. The activities undertaken by the assessee within the short span of four months of its creation were charitable in nature and recommendation for registration has been made by the Assessing Officer as well as Addl. CIT. In that view of the matter, we are of the view that the learned CIT was not justified in refusing the registration u/s 12A of the Act to the assessee. We, therefore, set aside the order of learned CIT and direct him to grant the registration to the assessee society.