CIT not authorized to verify charitable activities of trust while granting registration u/s 12AA

Brief of the Case ITAT Delhi held In the case of Jaipal Singh Sharma Trust vs. CIT that it is well settled that at the stage of grant of registration, the non-commencement of the activities by the Trust cannot be a ground for refusal of registration u/s 12AA. On the observations made by the CIT, on the alleged inadequacy of the evidences brought on record to show the capacity of the lenders from whom the assessee trust had borrowed loans, it is clear that such comments cannot be a ground for refusal of grant of registration u/s 12AA of the Act. The aspect regarding examination of the source an...