Section 12AA of the Income-tax Act, 1961—Charitable or religious trust— At the time of considering the grant of registration, only the objects and genuineness of the activities of the assessee were to be got verified

Facts: Whether the order of ITAT is not perverse in holding that CIT has not made adverse remarks on the objects and activities of the applicant and thereby directing to grant registration to the applicant whereas the CIT had clearly established that the applicant was operating on commercial principles and eligible for registration?

Held, that the contention of the assessee that the corpus got created from donations as received for the setting up of the school, had not been rebutted by producing any material to the contrary on record. Regarding creation of assets, the Tribunal had recorded nothing had been brought on record to show that the assets of the assessee were meant for any purposes other than its aims and objects which included managing the affairs of the school and that as per the balance sheets, the entire expenditure incurred by it had been for the purposes of school only. Further, at the time of considering the grant of registration, only the objects and genuineness of the activities of the assessee were to be got verified. Accordingly, the Tribunal directed the CIT (E) to grant registration to assessee. No question of law, much less, the substantial question of law arises in this appeal. - CIT V/s RURAL EDUCATION & WOMEN WELFARE SOCIETY, SAS NAGAR - [2018] 6 ITCD Online 149 (P&H)