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2016 (5) TMI 1003 - AT - Income TaxGrant of Registration under section 12AA rejected - time period prescribed for disposal of the application - whether the condition for grant of Registration are not met by the Society as the applicant is not engaged in any charitable activity as such? - Held that:- Assessee has filed an application for registration on 19.6.2015, but the ld. Commissioner of Income Tax (Exemption) did not opt to initiate proceedings for grant of registration by making necessary enquiries. The time period prescribed for disposal of the application is six months and the ld. Commissioner of Income Tax (Exemption) has issued first notice on 26.11.2015 for the appearance of the assessee on 15.12.2015 along with certain documents. On 15.12.2015, the ld. counsel for the assessee appeared and filed written submissions and also filed relevant evidence, but the ld. Commissioner of Income Tax (Exemption) did not ask anything further from the assessee and on the same very day he dismissed the application for registration only for the simple reason that the assessee could not produce the books of account and activities could not be verified. Whereas from the record, it is evident that the assessee has filed complete details of its activities, bylaws, audit report, balance sheet and various other evidence to establish the activities undertaken by the assessee. All these evidences were not looked into by the ld. Commissioner of Income Tax (Exemption). If the ld. Commissioner of Income Tax (Exemption) feels that he has to make necessary enquiries into the activities, he should have initiated proceedings for grant of registration in time after receipt of application for registration, but he has not done so. He has issued only one notice to the assessee, which was duly complied with by the assessee by filing relevant evidence. The ld. Commissioner of Income Tax (Exemption) did not look into it and has denied registration. Therefore, we are of the view that denial of registration under section 12A of the Act is not correct. Since the assessee has filed all the relevant evidence on record wherefrom it is established that it is engaged in charitable activities, the registration ought to have been granted to the assessee. We accordingly set aside the order of the ld. Commissioner of Income Tax (Exemption) and direct him to grant registration under section 12A(a) of the Act within a period of one month from the receipt of this order. - Decided in favour of assessee.
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