TMI Blog2017 (11) TMI 1722X X X X Extracts X X X X X X X X Extracts X X X X ..... er to be examined by the CIT, the same had to be specifically dealt with. No presumption can arise in favour of either party, in absence of any finding on that aspect or issue. However, there is force in the submission made by learned counsel for the assessee that the finding of the CIT was based on extraneous or irrelevant consideration and the order of the Tribunal, the order of CIT, to that extent, is wholly justified. In that view, the questions of law are answered accordingly. The matter is remitted to the Commissioner of the Income Tax to decide the petitioner's application for exemption afresh, in accordance with law keeping the scope of inquiry limited to the provisions under Section 12AA of the Act. - Income Tax Appeal No. 47 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for charitable purpose. On 25.05.2009 it had made an application for grant of registration under Section 12AA of the Act and thus claimed it's income to be exempt from tax under the Act. The aforesaid application came to be rejected by the Commissioner of Income Tax vide its order dated 26.11.2009. While rejecting the application, the only reasoning given by the Commissioner was to the effect that the cash credit entries found recorded (of interest free loans received by the assessee) were not genuine. On the other hand, the Commissioner did not examine the objects of formation of the assessee or it's activities. The aforesaid order passed by the Commissioner was challenged by the assessee in appeal before the Tribunal being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts including the objects of the societies being charitable. According to him, the CIT did not record any finding to that effect for that reason. He therefore submits, there is no error committed by the Tribunal in granting the registration for the reason that the rejection of that registration had been made by the CIT on extraneous considerations. Having considered the arguments advanced by learned counsel for the petitioner we find that the only relevant aspect required to be examined by the CIT for the purpose of granting registration was with regard to the objects of the society being charitable in nature and if the activities are genuine i.e. in consonance with the charitable objects. Clearly, neither the Commissioner nor the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incere. In this regard paragraph 21 of the aforesaid decision which is relevant is reproduced herein below: 21. Section 12AA, which lays down the procedure for registration, does not speak anywhere that the CIT, while considering the application for registration, shall also see that the income derived by the trust or the institution is either not being spent for charitable purpose or such institution is earning profit. The language used in the section only requires that activities of the trust or the institution must be genuine, which accordingly would mean, they are in consonance with the objects of the trust/ institution, and are not mere camouflage but are real, pure and sincere, nor against the proposed objects. The profit earning ..... X X X X Extracts X X X X X X X X Extracts X X X X
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