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2022 (3) TMI 1355 - HC - Income TaxExemption u/s 11 - application of the respondent seeking registration under section 12AA rejected on the ground that there was no satisfactory materials produced by the respondent - As per revenue respondent/assessee failed to produce the requisite documents for consideration of its application seeking registration under section 12AA - HELD THAT:- It is not in dispute that the respondent trust applied for registration under section 12AA of the Act, for the purpose of claiming exemption from the payment of tax. After thorough analysis of the legal position and the materials placed, by order dated 10.12.2010, the said application was rejected by the CIT, Madurai, based on the circular no.762 dated 18.02.1998 issued by the CBDT, New Delhi, on the ground that the respondent trust did not furnish the requisite satisfactory materials to grant such registration. Without properly examining the activities carrying on by the respondent trust and utilisation of the surplus funds received by them, in the light of the documents furnished, the ITAT, Chennai, merely referring to the objects of the respondent trust, opined that the purpose of the respondent trust was nothing but education; construction of infrastructure for pursuing educational activity is also by its very nature a necessary expenditure for effectively pursuing the educational objects; and the Act itself contemplates exemption to income of institution imparting education. Ultimately, it was concluded by the Tribunal that the respondent trust was eligible for registration under section 12AA. This court is of the view that such reasoning of the Tribunal without proper verification of the requisite materials, cannot be countenanced and on that score alone, the order impugned herein deserves to be set aside. We set aside the order of the Tribunal and remand the matter to it for fresh consideration. The respondent trust is at liberty to submit all the requisite documentary evidence available to them to substantiate its claim for registration under Section 12AA of the Act, to the Tribunal, within a period of two weeks from the date of receipt of a copy of this judgment.
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