TMI Blog2021 (5) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... duction of evidential documents i.e. the document evidencing the creation of trust. We observe that specific evidential documents furnished by the assessee in the paper book as referred above in this order has not been verified and examined by the ld. CIT(Exemption) in the context of evidential documents. In view of the above facts and circumstances, we would deem it proper to set aside the impugned order to the file of the ld. CIT(Exemption) for deciding afresh after considering the specific documents placed - Appeal of the assessee is allowed for statistical purposes. - ITA No. 1783/Ahd/2018 - - - Dated:- 4-5-2021 - Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member For the Assessee : Shri S.N. Soparkar, A.R. For the Revenue : Shri Vinod Kanwani, CIT-D.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This assessee s appeal arises from order of the CIT (Exemption), Ahmedabad dated 28-06-2018, in proceedings under section 12AA of the Income Tax Act, 1961; in short the Act . 2. The solitary ground of appeal of the assessee is directed against the decision of ld. CIT(Exemption) in rejecting their application in form no. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her deed contains Investment clause? If not, then furnish declaration u/s, 11(5) of the I.T. Act? 15. Please state whether deed contains Amendment/Alterations clause? (to be amended with the approval of QT (Exemption), Ahmedabad. 16. Please specify the clause in Trust deed regarding revocability or irrevocability. 17. Please state whether deed contains utilization clause? (Specifying that the profits are to be used only for the objects of the trust.) 18. Please specify the clause in the Trust deed which says that beneficiaries would be without discrimination on the basis of caste, creed, religion or sex and not for specific individuals. 19. Please state any part of trust property or income is used or applied or ensures directly or indirectly for the benefit of person specified u/5.13(3) of the IT. Act? 20. In the case of Trust running education activities through School/College, please furnish complete details such as fee structure, number of students study in various standards, details and bifurcation of 21. grant received and fees and its utilization, details of students i.e. no. and name of students who have been given exemption from paying fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law in view of following facts. i) Before going into contention of the Applicant made above, it is relevant to go through the relevant provisions of the Act i.e. Section 12A read with Rule 17A which are reproduced hereunder. 12AA. (I) The [Principal Commissioner or] Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) [or clause (ab)] of subsection (II) of section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the 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 pass 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 copy of such order shall be sent to the applicant: Provided that no order under sub-clause (ii) shall be passed unless the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y would be; there to see whether their activities are going on according to their rules and regulation or towards fulfillment of their objects. This may be not the intention of the Statute while making provisions of section 12AA rw r I7A. iii) The documents submitted by the applicant like copy of Rules and Regulation ? ATM Card, annual audit report for F.Yrs 2014-15,2015-16 and 2016-17 etc. though evidencing the existence of the trust but are not documents evidencing the creation of the trust and, therefore, requirement of rule 17A is not satisfied. In view of above facts, the contention of the applicant is not found convincing and therefore rejected. 9. In view of above, in the absence of complete details/documents, it is not possible to verify the existence and genuineness of the creation of the above trust. Section 12AA makes it very clear that before granting registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in consonance with the- objects of the trust or institution. Reliance in this regard is placed on judgment delivered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the material on record. After perusal of the detailed filed by the assessee, the ld. CIT (Exemption) has rejected application filed by the assessee in form no. 10A for the approval u/s. 12AA of the act on the ground that assessee has failed to file documentary evidences to enable him to satisfy to the genuineness of its creation, its activities and to verify these activities in consonance with its objects. After perusal of the material on record, it is noticed that assessee has placed documents at pages A to T along with documents from 01 to 73 in the paper book pertaining to the specific nature and activities of the assessee as cloth merchant association which were filed before CIT(Exemption). It is also observed that the ld. CIT(Exemption) has not given any specific reasons for disproving these documents in the order passed u/s. 12AA of the Act. We have gone through the decision of Hon ble Jurisdictional High Court of Gujarat in the case of Gujarat State Plastic Manufacturers Association Vs. CIT supra wherein the issue of granting approval u/s. 12A was decided in favour of the assessee after taking into consideration the specific nature of the activities of the trust. The rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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