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2015 (1) TMI 1102 - ITAT HYDERABADApplication for grant of registration u/s 12A rejected - Held that:- Trust/institution having charitable and religious objects will be eligible for exemption u/s 11 unless hit by restrictions imposed u/s 13(1)(a) or 13(1)(b) of the Act. As in the present case, ld. DIT(E) has not brought any material on record to show that provisions of section 13(1)(a) or 13(1)(b) applies to the assessee, denial of registration u/s 12AA for alleged violation of section 11(1)(a), in our view, is not justified. Moreover, applicability of section 13 of the Act can be looked into by the AO at the time of assessment proceedings and not by ld. DIT(E) while exercising power u/s 12AA of the Act. In view of the aforesaid, we hold that ld. DIT(E) was not justified in refusing grant of registration u/s 12AA of the Act on the ground that assessee is having mixed objects. As far as the other objections of ld. DIT(E) relating to non mentioning of date of creation of trust and absence of certain clauses in the trust deed, we have to observe that even though it is a fact that date of creation of trust is not specifically mentioned in the trust deed, however, the date of registration of the trust deed before the SRO i.e. 13/03/13 can be considered as the date of creation of trust. In so far as the absence of certain clauses, as mentioned in para 2 of ld. DIT(E)’s order is concerned, we are of the view that before refusing registration on the ground of absence of these clauses, ld. DIT(E) could have called upon assessee to explain on the issue and if necessary, asked assessee to make necessary amendments to the trust deed considering the fact that these clauses form part of a standard trust deed. However, without giving any opportunity to assessee to explain on the issue or make necessary amendment to trust deed, ld. DIT(E) was not justified in rejecting assessee’s application for grant of registration u/s 12AA. We consider it appropriate to set aside the impugned order of ld. DIT(E) and remit the matter back to his file to consider the issue afresh. - Decided in favour of assessee for statistical purposes.
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