TMI Blog2018 (11) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... e of these submissions were considered by the CIT(Exemptions). He has proceeded on the basis that the assessee is a trust constituted under a Trust Deed. Therefore the argument that there was non-application of mind by the CIT(E) to the contentions of the assessee is correct. The impugned order should be set aside and the issue with regard to grant of registration u/s. 12AA should be remanded to the CIT(Exemptions) for consideration de novo in the light of the facts as brought out by the assessee in its replies dated 06.06.2017 and 20.6.2017. The assessee will also be at liberty to file further evidence to substantiate its case for grant of registration u/s. 12AA of the Act. The CIT(E) is directed to decide the application for grant o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rea and for these purposes the authority shall have the power to acquire, hold, manage and dispose of movable and immovable property, whether within or outside the urban area under its jurisdictions, to carry out building, engineering and other operations and generally to do all things necessary or expedient for the purpose of such development and for the purposes incidental thereto. 3. The ITO Tax Officer (Exemptions) Gulbarga on behalf of the CIT (Exemptions) issued the notice vide dated 09.02.2017 and called for the details i.e., information / clarifications. The assessee in response to the above notice filed a detailed reply by enclosing the various details called for stating as follows:- (a) There are no donations under the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered under the Society Act or under Trust Act which have its own bye-laws. In fact it is a local authority incorporated by an act of Government. Therefore, as there is no separate bye-laws of the authority, the inclusion of the said clauses in the bye-laws is not applicable. It is incorporated under an act of State Legislature. The incorporated Act itself take care the clauses of Public interest like investment of fund, applicability to all persons irrespective of caste, creed, audit, irrevocable (as an act formed cannot be revoked), and on Dissolution to be considered as Government Property and other applicable clauses. The assessee in the said letter further made submissions and filed the details. 5. The assessee further fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication for Registration of a trust or institution has to satisfy himself about the objects of the trust or institution and the genuineness of its activities. 4. Considering the facts and circumstances of the case as discussed above, the application for registration u/s 12AA is hereby rejected. 7. Aggrieved by the aforesaid order of the CIT(Exemptions), the assessee is in appeal before the Tribunal. We have heard the rival submissions. The ld. counsel for the assessee submitted that the findings of the CIT (Exemptions) are contrary to the facts of the assessee s case and is perverse. It was submitted that the assessee does not have trust deed, yet CIT(Exemptions) has observed that the Trust deed copy does not contain mandatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther a trust or society. Further in its letter dated 20.6.2017, the assessee has also cited decisions rendered by judicial forums as to how the assessees who are carrying on activities similar to that of the assessee in the present case were held to be institutions entitled to registration u/s. 12AA of the Act. None of these submissions were considered by the CIT(Exemptions). He has proceeded on the basis that the assessee is a trust constituted under a Trust Deed. Therefore the argument that there was non-application of mind by the CIT(E) to the contentions of the assessee is correct. We are therefore of the view that the impugned order should be set aside and the issue with regard to grant of registration u/s. 12AA of the Act should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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