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TMI Blog2015 (1) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... te Tribunal was right in law and on facts in holding that the order of the Commissioner rejecting the application for registration u/s 12A of the Act on the ground of non-compliance of requirement of filing the audited accounts was bad and thereby directing the CIT to grant registration, if other conditions are fulfilled? 3. The facts of the present case are that the assessee had filed an application u/s 12A(a) of the Act for registration and the same was rejected by CIT(A) on the ground that the assessee had not fulfilled the conditions u/s 12A(b) which are defined in the Explanation below sub-section (2) of Section 288. On appeal by the assessee before the Tribunal, the Tribunal reversed the order passed by CIT(A) and allowed the appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised representative" means a person authorised by the assessee in writing to appear on his behalf, being- (i) a person related to the assessee in any manner, or a person regularly employed by the assessee; or (ii) any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings; or (iii) any legal practitioner who is entitled to practise in any civil court in India; or (iv) an accountant; or (v) any person who has passed any accountancy examination recognised in this behalf by the Board; or (vi) any person who has acquired such educational qualifications as the Board may prescribe for this purpose; or [(via) any person who, before the coming into fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee under sub-section (1), for all times in the case of a person referred to in sub-clause (a)*, for such time as the [Chief Commissioner or Commissioner] may by order determine in the case of a person referred to in sub-clause (b)*, and for the period during which the insolvency continues in the case of a person referred to in sub-clause (c)*. (5) If any person- (a) who is a legal practitioner or an accountant is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him, an order passed by that authority shall have effect in relation to his right to attend before an income-tax authority as it has i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:- (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Chief Commissioner or Commissioner] before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later: Provided that where an application for registration of the trust or institution is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned AR of the assessee contended that it is not the requirement of the law to file the copies of the audited statement of accounts by CA along with the application for registration u/s. 12AA of the Income Tax Act, 1961. The learned DR on the other hand supported the impugned order of the CIT. We find sufficient force in the contention of the assessee. The procedure for registration has been prescribed u/s. 12AA of the Act and as per the said provision, the CIT on receipt of application has to register the trust or institution u/s. 12A and he can call for the documents or information from the Trust regarding genuineness of the activities of the Trust and he is to satisfy himself about the object of the trust and he is to pass the order i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... speaking order in that regard while considering registration u/s. 12A as directed in the foregoing paragraph." 6.2 Considering the provisions of Sections 288 and 12A of the Act as well as the documents placed on record, we are of the opinion that the Tribunal is justified in coming to the conclusion that the view taken by the CIT is erroneous. The assessee has got the accounts audited and it is for the CIT to satisfy himself about the object of the Trust that he calls for such documents pursuant to the application. We are in complete agreement with the reasonings adopted and finding of facts arrived at by the Tribunal. 7. For the foregoing reasons, we answer the question raised in the present appeal in the affirmative i.e. in favor of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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