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TMI Blog2022 (1) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration of the Trust u/s 12AA of the Act of 1961, the satisfaction aforesaid is to be recorded after consideration of the documents available on the record and if the documents are not sufficient to show the genuineness of the activities to be charitable then registration can be denied." 2. The ld. AR at the outset submitted that the assessee first applied for registration on 27.7.2011 which was denied to the assessee vide order dated 30.1.2012 and the assessee filed appeal before the Tribunal and Tribunal vide order dated 16.6.2012 had set aside the matter and had restored the same to the file of ld. CIT(E) for proper adjudication of the issue and thereafter pursuant to the several queries raised from time to time the assessee made necessary compliances and filed all the necessary documents but again the ld. CIT(E) denied the exemption to the assessee and again assessee had filed appeal before this Tribunal and Tribunal vide order dated 7.9.2018 had allowed appeal of the assessee and which finally has been set aside by Hon'ble High Court to the Tribunal. The ld. AR submitted that the objects of the assessee trust are charitable and activities are genuine and the Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee by granting registration u/s. 12A of the Act without recording the satisfaction regarding genuineness of the activities of the trust and therefore it was prayed that the appeal filed by the assessee may be dismissed. 4. We have heard the rival parties and have perused the material placed on record. We find that the Tribunal vide order dated 7.9.2018 had allowed appeal of the assessee by holding as under: "6. We have perused the case record and heard the rival contentions. First we would like to address the issue of deemed registration. On a careful examination of the entire documents placed before us and the case laws, especially the decision of Hon'ble Allahabad High Court in the case of Society for Promotion of Education, Adventure Sport and Conservation of Environment vs. CIT (supra) which was upheld by the Hon'ble Apex Court vide order dated 16/2/2016 in SLP (C) No.9705 of 2009 in Civil Appeal No.1478 of 2016, we observe that in the aforesaid cases, the judicial finding was that assessee should not suffer because of inaction of the Revenue authorities. If even six months have passed and no decision has been taken by the Revenue authorities regarding either gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of granting registration, as held by various Courts referred to hereinabove, the Id. Commissioner of Income-tax (Exemptions) will not see whether the income of the trust is spent for charitable purposes or not. If any discrepancy is arrived at, that can be dealt with at the time of assessment. In view of the matter, assessee trust succeeds on the second limb of argument put forth by the Id. A.R. of the assessee and on the basis of merit itself, as examined hereinabove based on the judicial principles, we allow the appeal of the assessee and direct Id. Commissioner of Income-tax (Exemptions) to grant registration under section 12AA of the Act to the assessee-trust." 5. On an appeal filed by the Revenue against the order of the Tribunal the Hon'ble High Court has remitted back the issue before this Tribunal by holding as under: "By this appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961, a challenge has been made to the order dated 07.09.2018 passed by the Income Tax Appellate Tribunal, Lucknow. The appeal was admitted by this Court on 10.05.2019 on following substantial questions of law:- "1. Whether the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the activities of the Trust apart from its object. Before a direction for registration of the Trust U/s 12AA of the Act of 1961, it may be that deep scrutiny of the accounts or the documents is not required to be made as it can be at the time of assessment after the registration to deny the benefit but a prima facie case is to be made out for registration of the Trust. It cannot be on mere submission of the application with statement of object of the Trust but it has to be after assessing the genuineness of the activities of the Trust. It is missing in the order passed by the Income Tax Appellate Tribunal. Thus, the impugned order passed by the Tribunal is set aside. While answering the substantial questions of law in favour of the revenue, the matter is remanded to the Tribunal to consider the case afresh and while doing so it may not require to make scrutiny of the documents minutely but need to give findings regarding the object and genuineness of the activities of the Trust. Before a direction for registration of the Trust U/s 12AA of the Act of 1961, the satisfaction aforesaid is to be recorded after consideration of the documents available on the record and if the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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