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TMI Blog2022 (12) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed by the assessee challenging the impugned order dated 27/08/2018, passed under section 12AA(1)(b)(ii) r/w 12A, of the Act by the learned CIT(E). 3. In its appeal, the assessee has raised the following grounds:- "1. On the facts and circumstances of the case and in law the Ld. CIT (Exemption) erred in rejecting the application of registration made by the appellant u/s 12A of the Income tax Act, 1961. 2. The Assessee craves leave to add further grounds or to amend or alter the existing grounds of appeal on or before the date of hearing." 4. The only grievance of the assessee is against the rejection of its application for registration made under section 12A of the Act. 5. The brief facts of the case as emanating from the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts is not known, there is also misrepresentation of same in the books of account. d. In the books of account nothing is shown to have spent on charity by the Trust which is also evident from Income & Expenditure accounts: The amounts which have been spent from various sums deposited in the bank account of the Assessee Trust are shown to have been spent by the Trustee on charity in the submissions made. Importantly, no record of spending is maintained. e. Not only no record of spending on so claimed charity are maintained but as per chart given in reply dated 22.05.2018 substantial amount has been paid to Zenith Hospitals where Trustees are owners. Moreover, amount of Rs.88,000/- is spent on travelling of trustees which cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an acceptable reason for showing transactions differently in the books of accounts though this is the reason given by the Assessee Trust for showing the transactions differently from they are. 7. As per the provisions of section 12AA (1)(b), a trust is to be granted registration if the Commissioner is satisfied about the objects of the trust and the genuineness of its activities. Both these requirements are cumulative and not alternative. The satisfaction of the registering authority cannot be a subjective satisfaction based on whim or caprice. It has to be a bona fide and objective satisfaction, based on due application of mind to a certain set of facts or materials before him. The satisfaction of the registering authority is not a pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see filed before the learned CIT(E): "4. In response to the above queries raised, Shri Pranay N Ingle, Authorized Representative of the assessee, vide letter dated 16.07.2018, submitted: 4.1 The Ledger Account of the Trustee from last 4 years attached hereby for your reference where the trustee has taken the money from a local party in the nature of donations but incurred at trustee level only. Hence from accounting point of view the transaction is not completed and since running from last 4 years as explained by me in detailed explanation sheet against credits and debits of bank statements. Hence accounted in trustee account only (a) YES The trust deed contains the directions of taking money in the nature of donations and the same wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... people) of getting treatment medicines and treatment methods to treat the TB patients and giving them all kinds of medical aid which they should get. 6. The said money was never used for the construction of any building nor any immovable property. 4.2 During the hearing process before the Commissioner, the same point was raised and we have replied that we were doing the activities during last 4 years, thereby doing free medical camp. Treating patients at concession rates and giving medical facilities at also concessional rates but trustee could not maintain the activity records for which we request you to kindly accept this fact and in the Financial year 2017 -2018 there was activity mentioned in the Income and expenditure account and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave filed ITR 7 by clicking AOP or BOI option without 12A option and the file was successfully accepted by the E-filingdept and hence was filed. Trust me there was not any motive nor our undue intention to take any benefit of 12 A expenses and income treatments. All the expenses were disallowed and accounting treatment treated accordingly The same you can check with respective income tax efiling web site." 7. From the above, it is evident that the learned CIT(E) only took into consideration the events prior to the financial year 2017-18 in regard to which the assessee also accepted that the trustee could not maintain activity records properly. However, from the financial year 2017-18, the income and expenditure account indicates free medic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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