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2022 (9) TMI 353 - AT - Income TaxExemption u/s 11 - grant of registration u/s. 12A - CIT (E) rejected the application for grant of registration on the ground that the assessee has given undue benefit to the President & Treasurer and has thus violated the provisions of section 13 of the I.T. Act - genuineness of the address is also in doubt because the address of the partnership firm and that of the assessee are same - HELD THAT:- The issue has not been properly appreciated by the ld. CIT(E) while denying registration u/s.12AA - The various allegations made by the CIT(E) while denying registration u/s. 12AA have been addressed by assessee, which in our opinion requires verification and proper appreciation of facts by the CIT(E). So far as the allegations of the CIT(E) that the assessee trust has paid undue advantage to the President and Secretary is concerned, it is the submission of the assessee that they are looking after 10 centers and the salary paid to them is commensurate with their qualification and the area of operation and therefore, the same in our opinion requires proper appraisal of facts by the ld.CIT(E). Similarly, the allegation that the address of the partnership firm and that of the assessee are same in our opinion cannot be a ground for denying the benefit of registration u/s. 12AA - So far as the allegation of the ld.CIT(E) that the genuineness of the books of accounts are doubtful is concerned, we find merit in the arguments of assessee that the cash withdrawals so made were utilized for payment of salary and various other expenses and there is no violation of section.40A(3) of the I.T.Act. We find from the order of the PCIT that he has granted registration u/s. 12AA for the period from the AY 2022-23 to AY 2026-27. We are of the considered opinion that the matter requires a revisit to the file of the PCIT for deciding the issue afresh and in accordance with law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
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