TMI Blog2020 (9) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... by the trust whether genuine or not and nothing else. Non-filing of return under Sec.139(4A) cannot be the ground to demonstrate that the activities of the trust were not genuine. Since the assessee has not filed any return therefore there is no question of getting any exemption under Sec.10 and 11 of the Act and hence, there is no jeopardy caused to the Revenue. AO at the time of assessment proceedings, can take appropriate steps as per law regarding the non-filing of return under Sec.139(4A) - registration u/s 12AA should be granted to the assessee trust. Accordingly, we reverse the order of the ld. CIT(Exemption) and direct him to grant registration u/s 12AA. Exemption u/s 80G(5)(vi) rejected - In this case, the assessee has failed to furnish requisite details and supporting evidences to the revenue authorities for verification and substantiating its charitable activities. That at the time of hearing before us, the learned Authorised Representative prayed for one final opportunity so that he will produce all the relevant details as called for before the ld. CIT(Exemption). That considering our decision, directing the ld. CIT(Exemption) to grant registration u/s 12AA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has observed that the assessee trust was required to file return of income as per Sec.139(4A) of the Act since the assessee trust has shown receipts exceeding the maximum amount which is not chargeable to income tax. The ld. CIT(Exemption) was of the opinion that these facts raise serious concern on the genuineness of the activities of the trust to be carried out. However, at Para 3 of his order, ld. CIT(Exemption) noted at the same time that whatever queries were asked to the assessee trust, they have uploaded the same on ITBA Portal on 05.01.2019. Therefore, it is evident from the facts that whatever the details were called for from the assessee trust, they have all been furnished by the assessee to the Department. That at the time of granting registration u/s 12AA of the Act, it is a settled norm that the ld. CIT(Exemption) should look into two areas i.e., (1) Objects of the trust; and (2) Genuineness of the activities carried out by the trust. The objects of the trust were not disputed by the Department nor they have disputed the genuineness of the activities conducted by the assessee trust. The only reason for not granting exemption u/s 12AA of the Act was that the return unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution. [Para 34] 5. Similar view was reiterated in the case of CIT Vs Babu Ram Education Society reported in (2018) 96 taxmann.com 606 wherein the Hon'ble Allahabad High Court held as under: Section 12A of the Income-tax Act, 1961 - Charitable or religious trust - Registration of (General) - Whether registration of trust does not involve enquiry into actual activities or application of funds, etc. and at that stage, only enquiry required to be conducted is with respect to object of trust alone and if assessee is found to have been actually engaged in any non-charitable activity, benefit of exemption may be denied in manner provided by Act - Held, yes - [Para 7] [In favour of assessee] (Head Note) 12. The Hon'ble High Court, in the above referred case held that registration of the trust does not involve enquiry into the actual activities or application of funds, etc. The Tribunal has committed no error in following the earlier order. At that stage, the only enquiry required to be conducted was with respect to the object of the trust alone. The objections raised by the Commissioner pertain to matters that may be examined at the stage of assessment. At tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee s case, we find that non-filing of return under Sec.139(4A) of the Act, cannot be the ground to demonstrate that the activities of the trust were not genuine. That even from the order of the ld. CIT(Exemption), it is evident that he has not conducted any specific enquiry or verification on facts before coming to conclusion of rejecting the application of the assessee trust. 8. Furthermore, the purpose of return under Sec.139(4A) of the Act, is that the assessee has shown receipts exceeding the maximum amount which is exempt from tax. Now this return is to be filed in relation to the claiming of the benefits of Sections 10 11 of the Act. Since the assessee has not filed any return therefore there is no question of getting any exemption under Sec.10 and 11 of the Act and hence, there is no jeopardy caused to the Revenue. However, the learned Assessing Officer at the time of assessment proceedings, can take appropriate steps as per law regarding the non-filing of return under Sec.139(4A) of the Act. Considering the totality of the facts and circumstances in this case and following the judicial pronouncements cited supra, we are of the considered view that registr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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