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2021 (9) TMI 1482 - AT - Income TaxExemption u/s 11 - refusing to grant registration u/s 12AA (1)(b)(ii) - utilization of the fund and receipt thereof from the agriculture activities - whether the activities of the assessee are genuine, and the object of the assessee are charitable in nature or not? - HELD THAT:- We have gone through the record from the record it is discernible that the ownership document per duly placed by the assessee before the CIT exemption and also before us which clearly shows that the ownership of the land vested in the assessee. Assessee had also placed on record the sale of agricultural produce by filing the form J - The documents clearly shows that the finding recorded by the CIT exemption was against the record. In any case at the time of grant of registration under section 12 AA of the of the Income Tax Act what is required to be seen is whether the activities of the assessee are genuine, and the object of the assessee are charitable in nature or not. No comments were made by the CIT exemption in respect of above said two aspect and the whole premise of rejection order of the registration was based on utilization of the fund and receipt thereof from the agriculture activities. In our view the same is not permitted in view of the law laid down by the Hon’ble Supreme Court in the matter of Anand Social [2020 (2) TMI 1293 - SUPREME COURT], Dawoodi Bohara Jamat [2014 (3) TMI 652 - SUPREME COURT]. In the present case the finding recorded by the CIT exemption is not arising out of the record, rather it is contrary to the record. In our view the assessee was able to prove that the objects of the assessee are charitable, and the activities of the assessee are also genuine. Therefore, respectfully following our decision in the case of Saraswati Education [2021 (9) TMI 840 - ITAT AMRITSAR] we direct the CIT exemption to grant registration to the assessee society from the date of application. Decided in favour of assessee.
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