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2013 (11) TMI 903 - ITAT HYDERABADCondition for denial of registration under section 12AA of the Income Tax Act – Charitable purpose u/s 2(15) - Held that:- Section 12AA of the Act provides procedure for registration of a trust/charitable institution. Clause (a) of subsection (1) of section 12AA empowers the CIT/DIT(E) to call for such documents or information from a trust/charitable institution as he thinks necessary in order to satisfy himself about genuineness of activities of a trust/charitable institution and may also make such enquiry, as he may deem necessary in this behalf. The said provisions in section 12AA make it clear that the CIT/DIT(E) is not supposed to allow registration with a blind eye. The DIT(E) after considering the record before him, has observed that the assessee is not an independent organisation, it is an extended wing of organisation of Canada functioning through local institution viz., LVPEI. This fact was also established from the letter dated 1.6.2011 issued by LVPEI. The identity of the assessee itself is in doubt. Being so, registration u/s. 12AA was not granted. Genuineness of the activities carried on by the assessee as charitable is doubtful - Brought on record by the DIT(E) that the assessee not at all maintained books of account, bills and vouchers in their original form. All original documents have been kept by LVPEI. Funds are received by the LVPEI from foreign organisation and thereafter funds are parted with by LVPEI to the present assessee which shows that the assessee has been used as a tool in the hands of LVPEI – Assessee is not an independent organization functioning independently – Accordingly, registration denied u/s 12AA of the Income tax act – Decided against the Assessee.
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