TMI Blog2018 (5) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... vities. We note that there is no such finding in the impugned order of the ld. CIT(Exemption) that activities of the trust were not genuine. Going by the provisions of section 12A and 12AA of the Act, we hold that the grounds raised by the ld. CIT(E) (Registering Authority), explained in para 4 of our order, for rejecting of registration to the assessee trust cannot be sustained and ld. CIT(Exemption) ought to have examined whether activities of the trust are charitable in nature or not. Therefore, we direct the ld. CIT(Exemption) to examine the genuineness of the Trust and its activities and objectives and adjudicate the issue in accordance with law. - Decided in favour of assessee for statistical purpose. - ITA Nos.1688 & 1689/ Kol/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AA of the Act. (ii).M/s Gokul Leasing and Finance Pvt. Ltd. has donated an amount of ₹ 1,00,05,000/- to the trust and later on the trust returned back ₹ 90,00,000/- to M/s Gokul Leasing and Finance Pvt. Ltd, therefore ld CIT(A) concluded that trust has violated its declared objectives. (iii) M/s Gokul Leasing and Finance Pvt. Ltd is a specified person U/s 13(1) (c ) of the Act. Based on these reasons, the ld. CIT(Exemption) held that the trust falls within the ambit of section 13 of the Act and therefore, not eligible for registration U/s 12AA of the Act and this way the application for registration u/s 12AA was rejected. 5.Aggrieved by the order of the ld. CIT(Exemption), the assessee is in appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, he has to satisfy himself that the objects are charitable in nature and the activities being carried on or to be carried on are genuine, meaning thereby that, they are in consonance forachieving of charitable object and nothing else. So far as the violation of provision of section 13 of the Act is concerned, that is for limited purpose of taxing that amount and denying benefit of section 11 and 12 of the Act but cannot be a reason for refusing to grant registration u/s 12A of the Act or cancel the registration of the trust u/s 12A of the Act. It is clear from reading of section 12A 12AA of the Act that what is intended thereby is only a registration simpliciter of the entity of a trust. This has been made a condition precedent for clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the Trust and its activities. We note that there is no such finding in the impugned order of the ld. CIT(Exemption) that activities of the trust were not genuine. Going by the provisions of section 12A and 12AA of the Act, we hold that the grounds raised by the ld. CIT(E) (Registering Authority), explained in para 4 of our order, for rejecting of registration to the assessee trust cannot be sustained and ld. CIT(Exemption) ought to have examined whether activities of the trust are charitable in nature or not. Therefore, we direct the ld. CIT(Exemption) to examine thegenuineness of the Trust and its activities and objectives and adjudicate the issue in accordance with law. Therefore, we allow this appeal for statistical purposes in te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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