TMI Blog2017 (4) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... comes into play at the time of granting exemption under Section 11 of the Act and not at the time of granting registration under Section 12AA of the Act. No adverse remarks have been recorded by the CIT (E) with regard to the objects contained in the memorandum of the assessee-trust to come to the conclusion that its activities are not genuine. Thus, it has been rightly directed by the Tribunal to the CIT (E) to grant registration under Section 12AA of the Act. - Decided in favour of assessee - ITA No. 38 of 2017 - - - Dated:- 27-3-2017 - MR. AJAY KUMAR MITTAL AND MR. RAMENDRA JAIN, JJ. For The Appellant : Mr. Denesh Goyal Senior Standing Counsel Ajay Kumar Mittal,J. 1. The appellant-revenue impugns the order dated 08.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 13(1)(c) comes in to play at the time of granting exemption under Section 11 whereas Section 12AA(4) empowers the CIT to cancel registration under Section 12AA(4) where violation of Section 13(1)(c) noticed? (iv). Whether on the facts and circumstances of the case, the powers conferred under Section 12AA(4) inserted w.e.f. 01.10.2014 cannot be exercised by the CIT while granting registration under Section 12AA(1) even when the evidences adduced during the proceedings, reveal infractions of the statute? (v). Whether on the facts and circumstances of the case, the ITAT has erred in directing the registration to be accorded instead of reverting it back for re-examination in the light of its findings? 2. Briefly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r at the time of assessment proceedings and not at the time of granting registration under Section 12AA of the Act. Further, no adverse remarks had been made by the CIT (E) with regard to the objects contained in the memorandum of the trust. Hence, the instant appeal by the appellant-revenue. 3. We have heard learned counsel for the appellant-revenue. 4. The matter has been examined by the Tribunal after perusing the relevant statutory provisions. It has been categorically recorded by the Tribunal that the CIT (E) has to satisfy two conditions while granting registration under Section 12AA of the Act. Firstly, whether the objects of the assessee are charitable in nature and thus, the activities are genuine. It cannot be concluded on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier years, it cannot be said that the activities of the assessee are not genuine. Reliance placed by the learned counsel for the assessee on the judgment of the Allahabad High Court as well as the order of the Chennai Bench of the Tribunal are not out of place, whereby it has been held that non-filing of return cannot be one of the reasons for denying registration under Section 12A of the Act. With regard to the second objection raised by the Commissioner of Income Tax (Exemptions) that as per clause- 12 of the Memorandum of trust, the trustees have been given absolute powers to manage the property. We have perused the clause-12 of the Memorandum of the trust, whereby the trustees are authorized to demise the immovable property or propertie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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