By the Court.—We have heard Shri Rahul Agarwal for the appellant. Shri Govind Krishna appears for the Commissioner, Income Tax.

2. The appeal was admitted on 11.12.2012 on the following substantial questions of law. :

“(a) Whether it is essential for a trust to commence charitable/educational activity before it can be considered eligible for registration under Section 12 AA of the Income Tax Act and the order of the Tribunal below is legally sustainable?

(b) Whether the findings of the Tribunal that the appellant had failed to provide any explanation regarding the use of logo of a family concern in its prospectus and rebut the finding of the Commissioner of Income Tax-II, Agra is perverse and liable to be set aside?

(c) Whether in any view of the matter, the order of the Tribunal below is legally not justifiable and the application for registration under Section 12 AA and for approval under Section 80 G move by the appellant deserves to be allowed?”

3. Briefly stated the facts giving rise to this appeal are that Hardayal Charitable & Educational Trust, 318, Shambhu Nagar, Shikohabad, was established by a Trust deed executed on 17.11.2008. It was registered with Sub-Registrar, Shikohabad on 26.11.2008. The objects of the trust include establishment and maintenance of the schools, colleges and institutions for imparting education in different fields/subjects with the object of helping the poor and destitute. The trust deed also provides for medical benefits to the poor, needy and the aged.

4. The Trust applied for grant of registration under Section 12AA of the Income Tax Act, 1961 (in short the Act) alongwith application for registration on Form No. 10A and for grant of approval under Section 80G (5) (iv) in Form No. 10G, with certified copy of the Trust deed. The Commissioner of Income Tax-II, Agra directed the trust to furnish certain information, which was provided by the trustees with its letter dated 1.8.2011. The trustees disclosed the donations received as trust fund/corpus fund from Shri Hardayal Singh Education Samiti, 318A, Shambhu Nagar, Shikohabad, and Chaudhary Hardayal Singh Shiksha Samiti, 318, Sambhu Nagar, Shikohabad, with the information that both the societies are filing regular income tax returns. The balance sheets of both the donor societies were enclosed. The counsel appearing for the Trust, also disclosed that its first Chairman Shri Praveendra Kumar, Secretary Shri Sachin Yadav and the Treasurer Shri Amol Yadav are regularly assessed to income tax enclosing the copy of income tax acknowledgments and it further stated in para 6 as follows :

“6. That the objects of the trust are described in Sub Clause (a) to (k) of clause 5 of the Trust Deed. In furtherance of the educational objects, the applicant has started ‘Hardayal Technical Campus’ an engineering college at Farah, District Mathura. The construction of university campus is towards completion and admission for various educational courses are in progress. Copy of the prospectus issued by the university is filed. The advertisement appearing in July 2011 issue of Out Look magazine is also enclosed.”

5. The Trust received a letter dated 1.8.2011 from the Income Tax Officer (Tech), for Commissioner, Income Tax-II, Agra requiring it to produce books of accounts for the F.Y.2010-11 and for the period from April 11 to July 11, copy of the sale-deed in respect of purchase of land, the construction account in respect of the building and extent of construction done, details of advertisement-publication of brochure including prospectus, the rate at which prospectus is sold and the PAN of Choudhry Hardayal Singh Shiksha Samiti. The entire information was provided by the trust by the Chairman of the trust by its letter dated 16.8.2011.

6. By an order dated 17/23.8.2011, the Commissioner of Income Tax-II, Agra after providing an opportunity of hearing to the Trust, refused to grant registration under Section 12AA of the Act and the approval under Section 8