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2021 (4) TMI 293 - AT - Income TaxDenying the registration u/s.12AA - Charitable activity u/s 2(15) - CIT(E) holding that the activities of Trust are not charitable in nature and thereby refusing to grant registration u/s.12AA - whether the activities of the Trust are charitable in nature and Trust is eligible for registration u/s. 12AA? - HELD THAT:- The mere fact that the bills for the expenditure in the name of third party does not lead to the conclusion that the expenditure was not incurred by the appellant society. As rightly submitted by the ld. AR, it can be instance of reimbursement of expenditure incurred by resource person/speaker at the seminar. In any event, it is an item of assessment which can only be considered at the time of assessment. The other reason assigned by the ld. CIT (Exemption) to come to the conclusion that the funds collected remain unutilized for the purpose of pursuit of the objects of the appellant society but were utilized only for the purpose of making the FDs with the bank. Again this is an issue of assessment which can only be considered at the time of assessment, not at the time of grant of registration. The very basis of order of the ld. CIT (Exemption) cannot be sustained in the eyes of law. In any event, CIT (Exemption) should not have come to conclusion that the objects of the appellant society are not charitable in nature and the genuineness of the activities are not established based on the above observations, these observations even are held to be correct cannot lead to the conclusion that the objects are not charitable and genuineness of the activities are in doubt. Commissioner of Income Tax (Exemption) had not referred to any material on record to show that income of trust was applied for the purposes other than the purposes for which the appellant society was formed. Therefore, the order of the ld. Commissioner of Income Tax (Exemption) is set-aside. The ld. Commissioner of Income Tax (Exemption) is directed to grant the registration u/s. 12AA - Decided in favour of assessee.
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