TMI Blog2022 (2) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. For that matter, the primary duty of the Ld.CIT(E) is to examine the objectives of the Society and if he is having any doubt about the genuineness of the activity carried on by the assessee society, it is open to the Ld.CIT(E) to depute income tax officials to examine the objectives of the society by conducting enquiries and after receipt of the enquiry report, the Ld.CIT(E) is empowered to exercise his discretion based on the material available on record, whether to grant registration u/s 12A/12AA of the Act or not. In the present case on hand, the Ld.CIT(E) simply rejected 12AA registration on the ground that the assessee has claimed exemption u/s 11 without having registration u/s 12AA during the A.Ys 2015-16 to 2017-18. In our op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [CIT(E)], Hyderabad dated 31.07.2018. 2. The only grievance of the assessee is that the Ld.CIT(E) denied registration u/s 12AA of the Income Tax Act, 1961 (in short Act ). Brief facts of the case are that the assessee is a society registered under Societies Registration Act and is running educational institutions. An application was filed u/s 12AA of the Act, before the Ld.CIT(E), Hyderabad, having jurisdiction over the assessee. The Ld.CIT(E), Hyderabad passed order u/s 12AA(1)(b)(ii) of the Act on 31.07.2018, rejecting the application for registration u/s 12A/12AA of the Act. 3. On being aggrieved, the assessee preferred an appeal before ITAT, raising the following grounds : 1. The order of the learned Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es He further submitted that the Ld.CIT(E) rejected the registration u/s 12A on the ground that the assessee had claimed exemption u/s 11 of the Act for the A.Y.2015-16 to 2017-18, though the assessee was not granted registration u/s 12AA. He further submitted that the Ld.CIT(E) has not at all considered the objectives of the society at the same time he has not disputed any of the objectives of the society, but simply rejected the 12AA registration on the ground that the assessee has claimed exemption u/s 11 without there being 12AA registration. Therefore, pleaded for registration u/s 12AA of the Act. 5. On the other hand, the Ld.DR submitted that the assessee has claimed exemption u/s 11 without having registration u/s 12AA for man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld.CIT(E) simply rejected 12AA registration on the ground that the assessee has claimed exemption u/s 11 without having registration u/s 12AA of the Act during the A.Ys 2015-16 to 2017-18. In our opinion, the Ld.CIT(E) has not at all looked into the objectives of the society and simply rejected registration u/s 12AA based on the wrong claim made by the assessee during the A.Y.2015-16 to 2017-18. Now, it is pertinent to examine the provision for procedure for registration u/s 12AA. Procedure for registration. 12AA. (1) 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 sub-section (1) of section 12A, shall- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stage at which they were on that day. (2) Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) or clause (ab) of subsection (1) of section 12A. (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] and subsequently the Principal Commissioner or Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X
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