1 In High Court of Judicature at Madras Dated: 05.11.2014 Coram Honourable Mr.JUSTICE R.SUDHAKAR and Honourable Mr.JUSTICE R.KARUPPIAH Tax Case (Appeal) No.688 of 2014 Commissioner of Income Tax Salem. Appellant Vs. M/s.Hare Krishna Movement, Dharmapuri Radhae Krishna Brindavanam, No.1-367, Hoggenakal Road, Attukaranpatti Village, Dharmapuri - 636809. Respondent APPEAL under Section 260A of Income Tax Act against order dated 04.02.2014 made in I.T.A.No.2056/Mds/2013 on file of Income Tax Appellate Tribunal 'B' Bench, Chennai. For Appellant : Mr.J.Narayanasamy Standing counsel for Income Tax JUDGMENT (Delivered by R.SUDHAKAR,J.) This Tax Case (Appeal) is filed by Revenue as against order of Income Tax Appellate Tribunal raising following substantial question of law: 2 "Whether on facts and in circumstances of case, Tribunal was right in holding that assessee is entitled for registration under Section 12AA?" 2. respondent - trust, which was formed by trust deed executed on 18.01.2010, filed application under Section 10A of Income Tax Act for registration under Section 12AA of Income Tax Act on 11.03.2013. application for registration was processed on basis of materials enclosed. On intimation by Department by letter dated 01.04.2013, applicant - trust filed letter dated 25.6.2013 furnishing certain details. One of details contained in response is that trust received land as gift from donors, property donated was registered in favour of trust on 04.02.2010 and that is recorded in books of accounts for year ending 31.3.2010. It appears that property has been actually handed over to trust on 26.5.2011. On subsequent hearing dates, applicant - trust filed another letter dated 22.9.2013 filed on 25.9.2013 enclosing certain details of property gifted to trust along with relevant particulars including income and expenditure statement, balance sheet etc. 3. Original Authority was of view that though gift deed was registered on 04.02.2010, property was handed over to corpus of trust only on 26.5.2011 and trust has not shown any diligence in taking over property. Having brought asset in 3 books of accounts of trust for year ending 31.3.2010 itself and taking over of asset subsequently on 26.5.2011 would show that accounts and activities of trust were not at all clear. further ground is that trust had not shown any material evidence to show that they are carrying on charitable activity. On this premise and on basis of report of Inspector, who stated that except conducting pooja to Presiding deity and distributing Prasadam to devotees, no charitable activity has been effectively taken. Hence, application was rejected. As against said order of rejection, assessee filed appeal before Income Tax Appellate Tribunal, which allowed appeal directing Original Authority to grant registration. Aggrieved by same, Revenue has filed present Tax Case (Appeal). 4. Heard Mr.J.Narayanasamy, learned standing counsel appearing for Revenue and perused materials placed before this Court. 5. We find that reasons given by Original Authority to decline registration is trivial and does not sub-serve cause of charitable trust, which seeks registration under Section 12AA of Income Tax Act. There is no doubt that Trust got registered property, which was gifted to it, on 04.02.2010 itself. On execution of registered deed, they had primarily recorded in their books of accounts as on 31.3.2010. Hence, no fault could be attributed to trust, when donor does not physically handed over possession of 4 property. donee cannot insist donor as to how his donation should be made. Trust is started with avowed object of conducting religious as well as charitable activities. It is in nascent stage as we could see from date of formation and seeking registration under Section 12AA. Therefore, Department was not correct in coming to conclusion that genuineness of trust is in doubt. Primarily reason as we could see from order of original authority is not on account of nature of activity of trust, but on ground that property donated was registered on 04.2.2010, but taken over physical possession only on 26.5.2011. We find that such reasoning is totally misconceived. As we have already observed, donee cannot make conditions or call upon donor that he should deliver possession immediately. What has been given as gift by registered document has been entered into books of accounts promptly. delay in handing over possession cannot be attributed to fault of trust and as consequence interference drawn by Original Authority that there is error in maintaining accounts appears to be hyper-technical. Tribunal was correct in rectifying error and allowing appeal. It is not as if that Original Authority did not have power to check activities of trust, as Section 12AA of Income Tax Act provides for appropriate action to be taken, if objects of trust and its activities are not in consonance with provisions of law. That stage has not yet come and therefore, Department is at error in declining to grant registration. 5 6. In light of above, we see no error in order of Tribunal. We find no question of law much less any substantial question of law arises for consideration in this appeal. Accordingly, order of Tribunal stands confirmed and this Tax Case (Appeal) stands dismissed. No costs. Index :Yes/No (R.S.,J) (R.K.,J) Internet:Yes/No 05.11.2014 sl To 1. Income Tax Appellate Tribunal 'B' Bench, Chennai. 2. Commissioner of Income Tax, Salem. R.SUDHAKAR,J. AND 6 R.KARUPPIAH,J. Sl Tax Case (Appeal) No.688 of 2014 05.11.2014 Commissioner of Income-tax, Salem v. M/s. Hare Krishna Movement