JUDGMENT The respondent Sri Gururaja Seva Samiti had on 02.04.2008 applied for registration of the Society as a religious trust under Section 12A of the Income Tax Act, 1961. The said application of the respondent was rejected by the Director of Income Tax (Exemptions), (for short ‘DIT (Exemptions), Bangalore, after holding that the objects of the Society were not specific and also since it was not possible to verify the genuineness of the objects and activities of the Trust, as required under Section 12AA of the Act. Challenging the said order, the respondent filed an appeal before the Income Tax Appellate Tribunal, which was allowed vide order dated 13.03.2009 holding that the case was not for grant of exemption but merely for registration and also that the objects for which the Society had been established were specific and could not be termed as wide and vague. Accordingly, the DIT (Exemptions) was directed to allow the registration of the Society. Challenging the said order, this appeal has been filed by the revenue which was ADMITTED on 30.03.2010 on the following question of law: “Whether the Tribunal was correct in holding that the assessee would be entitled to claim registration under Section 12A of the Act as some of the objects was of charitable nature by ignoring the clauses in a deed which permitted the assessee to utilize the funds for religious purposes and carry on commercial activity by constructing and letting out community hall?” 2. We have heard the arguments of Sri K.V. Aravind and Sri Balram R. Rao, learned advocates appearing for appellant and respondent respectively. Perused the orders of Director of Income Tax (Exemptions), Bangalore and ITAT. 3. It is contended by Sri K.V. Aravind, learned advocate appearing for appellant that Tribunal erred in allowing the appeal by ignoring the clauses found in the Memorandum of Association, which permitted the assessee to utilize the funds for religious purposes and carry on commercial activity by constructing and letting out community hall. Hence, he prays for answering the question of law in favour of Revenue Per contra, Sri Balram Rao, appearing for asessee would support the order of the Tribunal. 4. It is an undisputed fact that at the time of application for registration the respondent Society had not commenced its activities and had not received the income. Hence, he prays for answering the question of law in favour of Revenue Per contra, Sri Balram Rao, appearing for asessee would support the order of the Tribunal. 4. It is an undisputed fact that at the time of application for registration the respondent Society had not commenced its activities and had not received the income. The question of verifying the genuineness of the activities of a Trust can be considered only after it is registered and carries on the activities. It is settled law that in the first year when the trust is sought to be registered, it could not have carried on any activity, thus the question of verifying the genuineness of such activities cannot be considered. The refusal to register the Trust on such ground by the DIT (Exemptions) could not thus be justified. The Tribunal has relied on the Division Bench judgment of this Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust -vs- Director of Income Tax (Exemptions) 285 ITR 327, wherein it has been held that for arriving at the satisfaction for genuineness of the Society or Trust, the Commissioner has to look at the objects of the Trust and it is not authorized to go into the nature of the activity by which the income is derived by the Trust. 5. In the present case, the question is with regard to the registration of the Trust in question wherein the objects have been clearly specified. The question of assessing the activities of the Trust would arise only after the Trust is registered and carries on the activities. At the time of initial registration, the same cannot be a question to be considered. In our view, the Tribunal has rightly allowed the appeal and directed the DIT (Exemptions) to register the Society as a religious Trust under Section 12A of the Act. 6. In view of the aforesaid, the appeal is dismissed. The question of law is decided in favour of the assessee and against the revenue. No order as to costs.