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2021 (6) TMI 100 - AT - Income TaxGrant of registration u/s 12AA - corpus donations collected in the preceding financial years had escaped assessment to tax - HELD THAT:- It is a settled position of law that at the time of grant of registration, the ld. CIT, Exemption can only look into two aspects i.e. (i) whether the objects of the trust or society are charitable in nature and (ii) genuineness of the activities of the trust or society in the light of the law laid down by Ananda Social and Educational Trust vs. CIT,[2020 (2) TMI 1293 - SUPREME COURT] - It is also equally settled position of law that the grant of registration and assessment are two separate and distinct procedures prescribed under the Income Tax Act. From the perusal of the impugned order, it is clear that the ld. CIT, Exemption had denied the grant of registration by taking into consideration that the corpus donations collected in the preceding financial years had escaped assessment to tax which clearly falls under the realm of the assessment. In view of the settled position of law discussed above, we are of the considered opinion that the grounds on which the ld. CIT, Exemption had rejected the grant of registration are untenable in law. Accordingly, we direct the ld. CIT, Exemption to grant the registration u/s 12AA. - Decided in favour of assessee.
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