Registration under s 12AA

Charitable trust — The principles laid down for excluding the income from consideration under s 10(23)(C) or ss 11 and 12 are not applicable while considering the application for registration under s 12AA — as held by PHHC in CIT v Surya Educational & Charitable Trust and Anr — In favour of: The assessee.

The Commissioner is empowered to examine the genuineness of the objects of the Trust, but not the income of the Trust, for charitable or religious purposes while granting Registration under s 12AA.

The Trust or the Institution in not required to start all its envisaged activities in the first year itself for the grant of Registration under s 12AA.

Decided on: 5 October 2011.