TMI Blog2021 (7) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... neness of the activities is not in doubt, the CIT has no jurisdiction to refuse registration u/s 12AA of the Act on any irrelevant ground. As pointed out by the Ld. counsel, in the present case, after examining the issue as per the order of the ITAT, the Ld. CIT(E) has not recorded any adverse observations in the impugned order in respect of the charitable activities carried out by the appellant Trust. So far as the Tax liability in respect of the corpus donation is concerned the same was not the issue for determination before the Ld. CIT(E) as the same has already been dealt with by the coordinate Bench in the first round of appeal and no direction was issued to look into the said issue. Hence, we find merit in the contention of the Ld. counsel that that since the Ld. CIT(E) has not given any adverse finding in respect of the charitable activities carried out by the assessee Trust, the Ld. CIT(E) ought to have granted registration to the appellant Trust. Hence, in our considered view, the impugned order is erroneous and therefore liable to be set aside. We therefore, respectfully following the ratio laid down in the cases discussed above, allow the appeal of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Ld. CIT (Exemptions) after considering all the objections as raised by the Ld. CIT(Exemptions) in the earlier order, dated 30 12.2016, and the Ld. CIT (Exemptions) has failed to consider such binding direction of the Hon'ble ITAT, Chandigarh Bench, Chandigarh in the case of appellant, while passing the present order. 3. That the refusal to grant the registration vide order, dated 12.03.2020 by the Worthy CIT (Exemptions) is on account of corpus donation, which issue has already been considered by the Hon'ble ITAT in para 8 and 9 of the order, dated 26.07.2017 and, thus, the specific directions of the Hon'ble ITAT, Chandigarh Bench, Chandigarh have not been followed, while rejecting the application u/s 12AA of the Income Tax Act. 4. That the order as passed by the Ld. CIT, (Exemptions) is against the facts and circumstances of the case. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal 4. Before us, the Ld. Counsel for the appellant submitted that the Ld. CIT(E) has passed the impugned order without taking into consideration the directions of the Tribunal. In the first round of appeal, the Tribunal vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tar education Society versus CIT (exemptions) ITA No. 795/ASR/2017 (ASR TRIB) 2. CIT (exemptions) versus kids-R kids international education Anand social welfare Trust (2017) 339 ITR 572 Punjab and Haryana High Court. 3. CIT exemption versus Shiridi Sai Darwar charitable Trust (2017) taxmann.com 49 (Punjab and Haryana). 4. CIT versus baba Kartar Singh Dukki educational Trust (2014) 42 taxmann.com 17 (Punjab and Haryana). 5. Saint Kabir educational Trust versus Commissioner of income tax 41 DTR 267 ASR TRIB. 5. In view of the aforesaid submissions made in the light of the facts of the case and the cases relied upon, the Ld. counsel submitted that the impugned order passed by the Ld. CIT(E) is bad in law, therefore liable to be set- aside. 6. On the other had the Ld. Department representative (DR) vehemently supporting the order passed by the Ld. CIT(E) submitted that there is no infirmity in the impugned order to interfere with as the Ld. CIT(E) has passed the order as per law and in accordance with the observations of the tribunal made wide order dated 26 .07.2017. 7. We have heard the rival submissions of the parties and perused the material on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: - 9. We find no merit in this argument or in this reason of the Ld. CIT (Exemptions) in holding that the assessee trust for the above reason was not entitled to registration u/s 12AA of the Act. The fact remains and which are not disputed by the Ld. CIT (exemptions), are that the assessee trust had received donation of ₹ 1.57 crore from M/s Mata Narayan Kaur Charitable trust. Whether the said donation was to preclude dissolution of the donor trust or that it was made from accumulated funds which had not been utilized in the specified time frame, have no effect nor do they affect the genuineness of the assessee trust. Whatever may have been done by the donor trust, may have an impact on the genuineness of the donor trust and there is no reason in holding the donee trust to be ingenuine on that account. Besides it is an uncontroverted fact that the donor trust was also enjoying exemption u/s 12AA of the act and any such donation made by a charitable trust are entitled to be treated as donation of the said trust. For the above reason, we reject the contention of Ld. CIT (Exemptions) that since the donations were received from M/s Mata Narayan Kaur Charitable Tru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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