In an appeal filed by the assessee-trust the Tribunal proceeded on the basis that the activities of the assessee-trust were at the commencement stage and that the registration of the trust under section 12AA was to be made after the Commissioner had satisfied himself that the objects of the assessee were charitable and allowed the appeal filed by the assessee and remanded the matter to the CIT (A ). On appeal dismissing the appeal the Court held that  the Tribunal had appreciated the law correctly. When the statute referred to the objects of the trust and the genuineness of its activities were to be investigated by the Commissioner, the words had to be given a proper and purposive construction. The Commissioner had to see that the constitution of the trust, its objects, its trustees and proposed activities were prima facie genuine. On that basis he had to consider registering the trust. If the activities were found not to be genuine at a later point of time, he had the option of cancelling its registration under section 12AA(3) .Referred 

DIT v. Foundation of Ophthalmic and Optometry Research Education Centre [2013] 355 ITR 361 (Delhi) (HC) , DIT (E ) v. Meenakshi Amma Endowment Trust [2013] 354 ITR 219 (Karn)(HC) , Hardayal Charitable and Educational Trust v. CIT [2013] 355 ITR 534 (All) (HC) , Self employers service society v. CIT [2001] 247 ITR 18 (Ker) (HC)  and Sree anjaneya medical trust v. CIT [2016] 382 ITR 399 (Ker) (HC)