TMI Blog2022 (1) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... tion) did not point out anything against the objects and genuineness of the activities of the trust but however rejected the registration on the basis of incorrect finding that no returns of income filed and no taxes were paid. We find that it is a settled principle that the grant of registration and the assessment proceedings or exemption u/s. 11 of the Act is separate and distinct. The process of registration is not on occasion to give a finding whether the assessee filed returns of income and paid taxes or not. These issues cannot be examined during the process of registration u/s. 12AA of the Act. Therefore, in our opinion, the order of CIT(Exemption) in denying the registration u/s. 12AA of the Act cannot be sustained and the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the category of Charitable trust/institution. Considering the same, the CIT(Exemption) issued letter through ITBA portal requesting to upload certain other information/clarification in order to process the said application. We note that that the CIT(Exemption) acknowledged compliances by the assessee to the said notice vide Para No. 2 of the impugned order. According to the CIT(Exemption) that the assessee has shown huge amount of surplus for F.Ys. 2016-17 and 2017- 18 and held it is an obligatory on the part of the assessee to file Income-tax Returns, as the income exceeds the maximum amount which is not chargeable to Income-tax Act. Further, he held the assessee did not file taxes on the above surplus. According to him, the assessee did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be the activities of the trust are not genuine. The assessee placed reliance on many case laws which were listed vide Para no. 7 of the written submissions, to contend that the CIT(Exemption) is only entitled to see whether the objects of the trust are charitable in nature and whether its activities are genuine or not. 7. Further, we note from the impugned order as rightly pointed by the ld. AR that the CIT(Exemption) did not point out the activities of the assessee are non-genuine and he rejected only on the ground that the assessee did not file return of income and not paid tax. This Tribunal in the case of Sant Zolebaba Sansthan Chikhali held the issue of grant of registration and the assessment of income of trust are distinct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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