In High Court of Judicature at Madras Dated: 05.01.2015 Coram Honourable Mr.JUSTICE R.SUDHAKAR and Honourable Mr.JUSTICE R.KARUPPIAH Tax Case (Appeal) No.378 of 2013 Commissioner of Income Tax Chennai. Appellant Vs. M/s.Ashok Nagar Anjanayer Bhaktha Sabha, Ashok Nagar Anjanayer Temple, 53rd Street, Ashok Nagar Chennai - 600 083. .... Respondent APPEAL under Section 260A of Income Tax Act against order dated 24.01.2013 made in I.T.A.No.1938/Mds/2012 on file of Income Tax Appellate Tribunal 'C' Bench, Chennai. For Appellant : Mr.J.Narayanasamy Standing counsel for Income Tax For Respondent: No appearance 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: "Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that registration under Section 12AA can be granted to 2 trust with both charitable and religious objects on application of Section 11(1)(a)?" 2. Learned counsel appearing for Revenue fairly submits that issue involved in this appeal is covered by decision of this Court in T.C.(A)No.579 of 2013 dated 27.01.2014, wherein this Court, following decision of this Court reported in (2012) 206 Taxman 69 (CIT V. Arulmighu Sri Kamatchi Amman Trust), dismissed appeal filed by Revenue holding that Revenue would not be justified in refusing grant of registration at threshold. For better clarity, relevant portion of decision of this Court reads as follows: "9. In present case also, Revenue only questions trust not having commenced its activity for grant of registration. provision under Section 12AA of Income Tax Act does not stipulate such condition for grant of registration. On other hand, Section 12AA (1) contemplates satisfaction of Commissioner about objects of Trust and genuineness of activities and make such enquiry as may be necessary for purpose of grant of registration. In so considering application, Commissioner has to give opportunity to assessee as provided for under proviso to sub-section (1) of Section 12AA. Under sub-section (3) of Section 12AA, Commissioner is given power to cancel registration, if he satisfies that objects of such trust are not genuine or not being carried on in accordance with objects of trust. When such authority is vested with Commissioner to cancel registration in event of trust not being carried on in accordance with objects of trust, we do not find any ground to say that merely on date of application, assessee trust had not commenced its activities, 3 hence, registration could not be granted. It is not denied by assessee that on date of application under Section 12AA, it was yet to commence its operation. But nevertheless genuineness of objects of trust were not questioned by Commissioner. Considering fact that continuance of registration is further subject matter of scrutiny by Commissioner as contemplated under Section 12AA(3) of Income Tax Act, we do not think that Revenue would be justified in refusing registration at threshold. Tribunal had followed decision of Gujarat High Court in case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust reported in 29 Taxman 228. We respectfully agree with decision of Gujarat High Court." 3. above-said view was followed by this Court, in which one of us was party (R.Sudhakar,J) in T.C.(A)No.261 of 2014 dated 22.8.2014. 4. Accordingly, following decision of this Court in T.C.(A)No.579 of 2013 dated 27.01.2014, this Tax Case (Appeal) stands dismissed. question of law is answered against Revenue. No costs. Index :Yes/No (R.S.,J) (R.S.,J) Internet:Yes/No 05.01.2015 To 1. Income Tax Appellate Tribunal 'B' Bench, Chennai 2. Commissioner of Income Tax, Chennai. R.SUDHAKAR,J. 4 AND R.KARUPPIAH,J. sl Tax Case (Appeal) No.378 of 2013 05.01.2015 Commissioner of Income-tax, Chennai v. M/s. Ashok Nagar Anjanayer Bhaktha Sabha