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TMI Blog2020 (2) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Income Tax (Exemptions) (for short, 'the CIT') to grant registration under Section 12AA of the Income Tax Act, 1961 (for short, 'the Act'). Following substantial questions of law have been claimed: "I. Whether on the facts and circumstances of the case, the Hon'ble ITAT has erred in directing the approval to be accorded instead of reverting it back for re-examination following the spirit of judgment by the Hon'ble Allahabad High Court in appeal No. 112 of 2013 in the case of CIT v. A. R. Trust as per which the Hon'ble ITAT does not have powers to direct registration even though the averred decision was in respect of 12AA matters? II Whether on the facts and circumstances of the case, the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essitated purchase of the said land. (c) The advance fee received was not shown in income and expenditure account. (d) The society was having surplus income over expenditure, ranging from 20% to 30% and the same was not reasonable. Aggrieved of the order, an appeal was filed. The Tribunal accepted the appeal on 5.4.2019. It was held that while considering the application for claiming registration under Section 12AA of the Act, the scope will not be to consider that the income was being applied in conformity with the aims and objects. The stage would be when the return is filed and in case of any violation, recourse could be taken to sub-section (3) of Section 12AA of the Act. Further, the advance fees having been shown as current li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he;-- (i) shall ass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a coy of such order shall be sent to the applicant:" From a perusal of the provision quoted above, it is evident that the CIT while processing the application for registration has to look into the genuineness of the activities of the trust and satisfy himself about the genuineness of the activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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