TMI Blog2021 (5) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... in the ITBA portal by the assessee. The provision of section 12AA of the Act mandates that the satisfaction has to be arrived at by the Ld. CIT (Exemption) before granting any registration under the said provisions. The satisfaction can only be arrived at once all the relevant details are placed before him - one more opportunity should be given to the assessee and accordingly, we set-aside the order of the Ld. CIT (Exemption) and restore the matter back to his file for re-adjudication while complying with the principles of natural justice - Appeal of the assessee is allowed for statistical purposes. - ITA No. 11/PUN/2021 - - - Dated:- 17-5-2021 - SHRI INTU RI RAMA RAO, AM AND SHRI PARTHA SAR ATHI CHAUDHURY, JM For the Assessee : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 ( the Act ) on 06.05.2020. The Ld. CIT (Exemption), on perusal of the said application, issued a letter through ITBA portal on 26.06.2020 calling upon the assessee to file/upload certain other information/clarification. The assessee had not complied with the said notice. 3. On perusal of the information/submission uploaded along with the application in Form No.10A, the Ld. CIT (Exemption) held that the assessee had failed to file credible evidence in support of activities carried out as required under the provisions of section 12AA(1)(a) of the Act. Since the assessee did not respond to the notice dated 26.06.2020, another notice dated 03.11.2020 was issued through ITBA portal requesting the assessee to file certain information/clar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from the order of the Ld. CIT (Exemption) at para 3 and 4 that certain details were asked from the assessee to be uploaded in the ITBA portal. The assessee has however not furnished those requisite details and the satisfaction regarding the charitable nature of objects and the genuineness of the activities of the trust could not be arrived at by the Ld. CIT (Exemption). Therefore, he has rightly rejected the application for grant of registration u/s 12AA of the assessee. 7. We have perused the case records, heard the rival contentions and considered the entire facts and circumstances in this case. We find, on one hand the assessee contends that the provisions of principles of natural justices were not followed by the Department and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant Director of Income Tax and find that it is not possible to agree with the same. The purpose of section 12AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine. In other words, the Commissioner is bound to satisfy himself that the object of the Trust are genuine and that its activities are in furtherance of the objects of the Trust, that is equally genuine. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term activities in the provision includes proposed activities . That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
