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2019 (3) TMI 288 - HC - Income TaxCharitable activity - registration under Section 12AA eligibility - Commissioner not satisfied in terms of Section 12AA(1)(a) - proof of objects of the trust are bona fide - non-speaking order - Lack of factual finding in Tribunal order - only the objects as stated in the trust deed and other matters should be examined only at the time of making regular assessment - HELD THAT:- If Tribunal was of the view that the order passed by the Commissioner needs to be reversed, then the Tribunal requires to give a factual finding as to how the Commissioner erred in appreciating the materials placed before him and how the Commissioner erred while recording his satisfaction in terms of Section 12AA(1)(a) of the Act. Burden is heavily on the assessee to prove that the objects of the trust are bona fide and there is bona fide charitable activity being done. It is true that the definition of “charitable purpose” as defined under Section 2(15) is an inclusive definition to qualify for a registration under Section 12AA of the Act. The Commissioner should be satisfied about the genuineness of the activities of the trust or the institution, and is entitled to make such an enquiry, as he deems necessary in this behalf. In the opinion of the Commissioner, the assessee did not satisfy the requirements. The proviso to Section 2(15) of the Act provides that advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity. Therefore, in our considered view, the Tribunal failed to properly examine the contentions advanced by the Revenue and by a non-speaking order, allowed the appeal filed by the assessee. Therefore, we are of the considered view that the matter requires to be re-considered by the Tribunal. - Appeal filed by the Revenue is allowed, the impugned order passed by the Tribunal is set aside, and the matter is remanded to the Tribunal to decide the same afresh
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