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2022 (1) TMI 687 - ITAT PUNEExemption u/s 11 - rejecting the application filed under Form No. 10A seeking registration u/s. 12AA - HELD THAT:- This Tribunal in the case of Sant Zolebaba Sansthan Chikhali [2021 (1) TMI 999 - ITAT PUNE] held the issue of grant of registration and the assessment of income of trust are distinct and separate, by placing reliance in the case of Ananda Social and Educational Trust [2020 (2) TMI 1293 - SUPREME COURT] which held the mandate of the provisions u/s. 12AA of the Act is to examine whether objects of the trust are charitable in nature or not and the activities of the trust are genuine. In the present case as discussed above the CIT(Exemption) did not point out anything against the objects and genuineness of the activities of the trust but however rejected the registration on the basis of incorrect finding that no returns of income filed and no taxes were paid. We find that it is a settled principle that the grant of registration and the assessment proceedings or exemption u/s. 11 of the Act is separate and distinct. The process of registration is not on occasion to give a finding whether the assessee filed returns of income and paid taxes or not. These issues cannot be examined during the process of registration u/s. 12AA of the Act. Therefore, in our opinion, the order of CIT(Exemption) in denying the registration u/s. 12AA of the Act cannot be sustained and the impugned order is set aside. Appeal of assessee is allowed.
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