TMI Blog2020 (2) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is also an issue with regard to the accounting. These having been shown in the books can be dealt with in detail by the Assessing Officer while framing the assessment and allowing exemption under Section 11 of the Act. The present stage would not be appropriate for the same. Additional land purchased, the Tribunal rightly observed that CIT has a power under Section 12AA(3) of the Act in case of utilisation of the said land against the aims and objects of the society. The grievance against the surplus income not being reasonable is baseless in absence of any challenge to the finding recorded by the Tribunal that excess income has been ploughed back by the society for furtherance of its object. There is no illegality in the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT 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'ble ITAT has erred on relying upon the case of CIT Vs. Surya Educational and Charitable Trust (2013) 355 ITR 280 where the fact of the present case was totally different. In the said case the trust was newly established where as in the present case the applicant has already conducted various activities. III. Whether on the facts and circumstances of the case, the Hon'ble ITAT is right in disregarding the fact that the assessee society has received advance rent of ₹ 13,87,000/- and the same is not shown in the income and expenditure account? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms 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 liabilities and not part of total income had no bearing on genuineness of the activities. The Tribunal observed that the security deposit received from the tenant was not to be part of total income. Vis-avis the additional land purchased by the society the same had no bearing on the genuineness of the activities of the society and in case of use of land for any other purpose, the same would entitle the CIT to exercise power under Section 12AA(3) of the Act. A specific finding was recorded that surplus which ranged from 15% to 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om 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 activities. The issues raised with regard to the security deposit being not in comparison vis-a-vis the rent received will not have impact on the genuineness of the activities. It is an admitted case that the security received was duly reflected in the books of account. Similarly, the enrouting of advance fee is also an issue with regard to the accounting. These having been shown in the books can be dealt with in detail by the Assessing Officer while framing the assessment and allowing exemption under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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