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2020 (12) TMI 118 - AT - Income TaxExemption u/s 11 - denying the grant of registration u/s 12AA - appellant trust had received corpus donations in F.Y. 2018 - 19, the appellant was indulging in profit making activities and the charitable objects were not proved - CIT-E re-characterizing the donations received towards “Corpus Fund” of the trust as a voluntary donations falling within the ambit of provisions of Sec.2(24)(iia) - HELD THAT:- This is an item for examination during the course of assessment proceedings of the trust and no re-characterization of any receipt is permissible during the course of proceedings for grant of the registration under Sec.12AA of the Act. It is a trite law that when the CIT (Exemptions) found that the objects of the trust are charitable in nature, the denial of registration under Sec.12AA of the Act is improper. There is no material brought on record by CIT (E) which suggests that genuineness of activities are in doubt. The finding of the ld. CIT (Exemptions) that the genuineness of the activities is not established is mere bald finding without any material on record - findings of CIT (Exemptions) cannot be sustained under law. Therefore, we direct ld. Commissioner of Income Tax (Exemptions), Pune to grant the registration from the date of the application i.e., 23.05.2019. Benefit of retrospective registration - HELD That:-. The grounds of appeal raised by the appellant seeking grant of registration earlier to date of application cannot be allowed for the reason that w.e.f 1st day of June, 2007, it is clearly provided vide sub-section (2) of Sec.12A of the Income Tax Act that the provisions of Sec.11 and 12 shall apply in relation to income of the trust from the assessment year immediately following the Financial Year in which the application for grant of registration is made. Impliedly, the ld. Commissioner of Income Tax (Exemptions) is not empowered to grant the registration with retrospective effect, there are no provisions providing exceptions to the sub-section (2) of Sec.12A under the statute. In the light of this discussion, these grounds of appeal are dismissed.
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