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2016 (1) TMI 1304 - AT - Income TaxRefusing to grant registration to the assessee u/s 12AA - Society had not carried out charitable activities and had also not applied its accumulated income as laid down in section 11 of the Act - Held that:- Commissioner of Income Tax could not have refused grant registration u/s 12A / 12AA of the Act to the assessee society for the reason that it had not carried out any charitable activities. Further we find that the Ld. CIT had refused registration also for the reason that the assessee had not applied 85% of its receipts for charitable purpose nor accumulated the same for application in future years, as per the provision of section 11 of the Act. The provision of section 12AA are very clear, as per which the only mandate given to the CIT before granting registration is to satisfy himself about the genuineness of the objects of the Trust and the activities of the Trust. Ld. CIT has only to see whether the objects of the Trust are charitable or not and the activities are genuine. The purpose being to establish the identity of the Trust to enable it to claim the benefits u/s 11 & 12 of the Act. The fulfillment of conditions of section 11 is a separate issue which is to be considered when return is filed by the assessee and examined by the AO. CIT could not have refused registration to the assessee u/s 12A for not complying with the condition of application / accumulation of income as specified in section 11 of the Act. Further we find that the Ld. CIT has refused registration on the recommendation of the AO, without disclosing the complete contents of the report and without confronting the same to the assessee. This we hold is against the principle of natural justice. Thus we direct the Commissioner of Income Tax to grant Registration to the assessee society u/s 12AA - Decided in favour of assessee.
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