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2018 (3) TMI 68 - AT - Income TaxRegistration u/s 12AA denied - Only reason recorded by learned CIT (Exemptions) for rejection of claim of the assessee is that vide earlier order its application was already rejected and assessee had not filed appeal against that order - Held that:- As we have gone through the order dated 03/08/2015 and noted that the order was passed ex-parte qua assessee. Learned A. R. has stated the reason for non appearance to be non receipt of specific notice. Rejection of earlier application and further not filing appeal before higher authorities cannot be held to be reason for assessee not to file a fresh application when its is permitted by the law. Therefore, we do not agree with learned CIT (Exemptions) as regards this finding. As regards other finding relating to remuneration drawn by the assessee and violation of section 13(1)(c), we find that during the financial year 2013-14 the assessee was a commercial company and taking of remuneration from the company was permitted as during that year admittedly the assessee was not registered u/s 12A of the Act. The arguments of Learned D. R. that the assessee had not produced books of account and vouchers is not having any force. At the time of registration, the CIT (Exemptions) is required to examine the objects of the assessee which in the present case are entirely charitable as the company is section 25 company As in the case of CIT vs. Red Rose School [2007 (2) TMI 575 - ALLAHABAD HIGH COURT] as held that CIT (Exemptions) has to satisfy himself about the genuineness of the activities of the trust and also the objects of the trust or institution. CIT (Exemptions) is empowered to make inquiries, as he thinks fit, to verify as to whether the activities are genuine or not but on mere presumption and surmises that income derived by the trust or institution will be misused or that there is some apprehension that the same would not be used in a proper manner, cannot be made a basis for rejection of registration. The genuineness of the activities of trust or institution has to be seen keeping in mind the objects thereof which necessarily means that the CIT (Exemptions) shall satisfy himself about the fact that the activities are genuine and in consonance with the objects of the trust or institution. Thus we direct the CIT (Exemptions) to grant registration to the assessee u/s 12A of the Act. - Decided in favour of assessee.
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