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2016 (2) TMI 395 - AT - Income TaxRegistration u/s 12AA denied - Held that:- At the time of granting registration, the Commissioner has to see that whether the assessee is established for the charitable purpose or not and whether the funds collected are being utilized for that purpose. Once the assessee has satisfied the conditions that it is existed for the purpose of charitable nature and the funds received also are being utilized to achieve the objects of the trust, the Commissioner has to grant the registration u/s 12AA of the Act. If at all doubts are there in respect of activities of the trust, there are other safeguards already provided by the Act. It can be considered at the time of the assessment and decided accordingly. In the present case, we find that the Ld. Commissioner rejected the registration u/s 12AA of the Act without there being any justified reasons. After careful consideration of the entire facts and circumstances of the case and also keeping in view of the judgement of Hon’ble Karnataka High Court, we are of the opinion that assessee deserve to be granted registration u/s 12AA of the Act. Thus, we quash the order passed by the Ld. Commissioner and grant registration u/s 12AA of the Act to the assessee - Decided in favour of assessee
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