a) The assessee-institution was formed vide a trust deed. It sought registration under section 12AA.
b) The DIT rejected the registration application as he was of view that the trust intended to carry out activities outside India.
c) The aggrieved-assessee filed the instant appeal.
The ITAT held as under:
1) Registration as per section 12AA by itself will not automatically confer the benefits of sections 11 and 12 to a trust, but the trust will get the benefit only on complying with the requirements of sections 11 & 12, which compliance can be examined by the assessing authority while processing the return filed by the trust. So long as the trust has objects which are charitable in nature, it is eligible for registration under section 12AA, unless there is a finding that the trust is not genuine.
2) In the case of Critical Art & Media Practices v. DIT (Exemption)  153 ITD 644/56 taxmann.com 118 (Mum.) it was held that trust could not be denied registration because of the fact that the activities of the trust extended outside India. However, while computing the income as per the provisions of section 11, the income which is applied on such activities in India only, will be eligible 'for exemption and subject to the provisions of section 11(1)(c) wherein the income applied outside India is also eligible for exemption, if the activities tend to promote the international welfare in which India is interested and the approval has been granted by the Board for such application of income.
3) Considering the principles laid down on the subject and the fact that assessee's objects were charitable in nature, the DIT was directed to grant registration under section 12AA. -  74 taxmann.com 66 (Hyderabad - Trib.)