- (1.) LEARNED counsel for the appellant -revenue during the course of hearing produced the following documents: - (i)Annexures 'A' and 'B' reports of Assistant Commissioner of Income Tax (ACIT) and Joint Commissioner of Income Tax (JCIT) dated 19.4.2012 and 26.4.2012 respectively whereby initially they had not recommended for registration of the respondent society. (ii)Annexures 'C' and 'D' report of ACIT and comments of JCIT dated 25.6.2012 and 28.6.2012 respectively whereby subsequently they had recommended for registration under Section 12AA and approval under Section 80G(5) (vi) of the Income Tax Act, 1961 (in short, "the Act"). The above documents Annexures 'A' to 'D' are allowed to be taken on record subject to all just exceptions.
(2.) THIS appeal has been preferred by the revenue under Section 260A of the Act against the order dated 17.4.2013, Annexure A.2, passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B' (in short, "the Tribunal") in ITA No.856/Chd/2012, proposing to raise following substantial questions of law: - i) Whether in the facts and circumstances of the case, the Tribunal was legally correct in allowing the appeal of the assessee by granting the registration under Section 12AA of the Income Tax Act even when the trust was not involved in carrying on any 'charitable activity' within the meaning of section 2(15) of the Act read with the decision of the Hon'ble Supreme Court in the case of MCD v. Children Book Trust., 1992 3 SCC 390in which it was inter alia held that education per se was not a charitable purpose? ii)Whether in the facts and circumstances of the case, the Tribunal was legally correct in holding that genuinity of its financial activities is not to be considered at the time of granting registration under Section 12A? iii)Whether in the facts and circumstances of the case, the Tribunal was legally correct in stating that carrying on of charitable activities at the time of registration and the utilization of funds are not relevant?
(3.) A few facts relevant for the decision of the controversy involved, as available on the record, may be noticed. The applicantsociety - Vishvas filed an application for grant of registration under Section 12A of the Act on 14.12.2011 in Form No.10A. The assessee submitted the requisite relevant documents including the objects of the institution. The Commissioner of Income Tax (CIT) made enquiries through the Assessing Officer and finally concluded vide order dated 29.6.2012, Annexure A.1 that the assessee had not been carrying on its charitable activities and therefore rejected the application. Aggrieved by the order, the assessee filed appeal before the Tribunal. Vide order dated 17.4.2013, Annexure A.2, the Tribunal allowed the appeal of the assessee holding that carrying on of charitable activities at the time of registration and utilization of the funds etc. were not relevant and once the objects of the institution were found to be charitable in nature, registration under Section 12AA of the Act had to be granted. Hence the instant appeal by the revenue. We have heard learned counsel for the appellant and perused the record.;