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2015 (10) TMI 4 - AT - Income TaxRejection of application for registration U/s 12AA - Held that - The Assessing Officer himself satisfied on behalf of the learned CIT and recommended registration U/s 12AA of the Act. However, the learned CIT was not found satisfied with the explanation submitted by the applicant. When all the three years copies of return was with the CIT and copy of aims and objects of the trust created was also submitted before him, he should have considered these aspects to judge the genuineness of the activities before rejecting the registration U/s 12AA of the Act. He should have given a show cause notice for not finding out by him genuineness of the activities of the trust, therefore, we direct the learned CIT to reconsider the assessee s application afresh and the assessee is also directed to cooperate with the CIT and furnish all the records for his satisfaction. Accordingly we set aside the order of the learned CIT, Alwar. - Decided in favour of assessee for statistical purposes only.
Issues Involved:
Appeal against rejection of registration under Section 12AA of the Income Tax Act, 1961 by the C.I.T. Alwar. Detailed Analysis: Issue 1: Grounds of Appeal The appeal was filed by the assessee against the order of the C.I.T. Alwar rejecting the application for registration under Section 12AA of the Income Tax Act, 1961. Issue 2: Observations of the C.I.T. Alwar The C.I.T. Alwar observed that the Assessing Officer's report did not sufficiently address whether the assessee's trust fulfilled all conditions under Section 12AA of the Act. The C.I.T. sought explanations and supporting evidence regarding the genuineness of activities, aims, and objects of the trust, as well as proper audited accounts. Issue 3: Response of the Assessee The assessee responded by submitting details to the Assessing Officer and argued for registration under Section 12AA. However, the C.I.T. found the provided documents inadequate to establish the genuineness of activities and aims of the trust, leading to the rejection of the application. Issue 4: Appeal before the Tribunal The assessee appealed the C.I.T.'s decision before the Tribunal, arguing that the trust fulfilled the conditions for registration under Section 12AA. The Tribunal noted that the Assessing Officer recommended registration, but the C.I.T. was not satisfied with the explanation provided by the assessee. Issue 5: Tribunal's Decision The Tribunal directed the C.I.T. to reconsider the application, emphasizing the need for a thorough examination of the genuineness of the trust's activities. The assessee was instructed to cooperate and provide all necessary records for the C.I.T.'s satisfaction. Conclusion The Tribunal allowed the appeal for statistical purposes only, setting aside the C.I.T. Alwar's order and instructing a fresh review of the application for registration under Section 12AA of the Income Tax Act. This detailed analysis covers the key issues, observations, responses, and decisions outlined in the legal judgment regarding the rejection of registration under Section 12AA of the Income Tax Act, 1961.
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