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2021 (1) TMI 157 - ITAT BANGALOREExemption u/s 11 - denial of registration u/s. 12AA - Survey proceedings - objects of trust were to establish educational institutions for providing training in professional, technical, information technology, medical and general education from nursery to degree classes and also higher education - HELD THAT:- The Hon'ble Karnataka High Court in the case of Garden City Educational Trust [2009 (7) TMI 832 - KARNATAKA HIGH COURT] has taken a view that grant of registration will not by itself confer benefits of exemption u/s. 11 and 12 of the Act to a trust and that so long as the activities are charitable in nature and if there is no evidence to show that the activities of the trust are not being carried out genuinely, then the registration has to be granted - CIT(E) seems to have taken recourse to the provisions of section 12AA(4) of the Act which was inserted by the Finance Act of 2014 w.e.f. 01.10.2014. We find that those provisions are applicable only when the CIT(E) seeks to cancel the registration already granted to a trust. Those provisions cannot be made applicable for grant of registration u/s. 12AA of the Act. None of the findings given in the survey report can justify the refusal of grant of registration to the assessee and the reasons given by the assessee in this regard are found to be acceptable. The CIT(E) has fallen into an error in concluding that the assessee did not adhere to the directions of the Tribunal and provide the necessary clarification. As assessee has also given clarification on other aspects, which will have a bearing on the grant of registration u/s. 12A of the Act. In the impugned order, the CIT(E) has neither dealt with those contentions nor has he found those contentions to be not correct, thus we are of the view that the assessee should be given the benefit of registration u/s.12AA - Appeal of assessee allowed.
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