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TMI Blog2022 (2) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (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 Tax (Exemptions) is erroneous both on facts and in law. 2. The Learned Commissioner of Income Tax (Exemptions) erred in holding that the appellant is not elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 many years, which explains the ingenuity of the organization, hence, the organization itself is not genuine. The Ld.DR further submitted that the Ld.CIT(E) relied on the judgement reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. 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- [(a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about,- (i) the genuineness of activities of the trust or institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication 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 accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution: Provided that no order under this sub-section shall be passe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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