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TMI Blog2017 (4) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015, claiming following substantial questions of law:- "(i). Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in holding that the CIT has not made adverse remarks on the objects and activities of the applicant and thereby directing to grant registration to the applicant whereas the CIT was prevented from making such observations as the applicant had not got its accounts audited and had also not filed returns of income which would have enabled the CIT to go into the stated objects and activities and draw conclusion about the genuineness of the same? (ii). Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in holding that non filing of return of income is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15, Annexure A.1, the Commissioner of Income Tax (Exemptions) [CIT(E)] denied registration to the assessee on the ground that it had not filed any return of income for the assessment years 2012-13 to 2014-15. The assessee's receipt for these years was Rs. 5,52,369/-, Rs. 15,15,442/- and Rs. 10,47,415/- respectively. It was further recorded that the accounts were not got audited by the assessee. Thus, the CIT (E) held that the accounts of the assessee were not reliable/genuine. Clause 12 of the objects of the assessee trust conferred absolute powers on the trustees to manage the property of the trust which in turn was liable to attract the provisions of Section 13 (1) (c) of the Act. Aggrieved by the order, the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 11 of the Act and not at the time of granting registration under Section 12AA of the Act. No adverse remarks have been recorded by the CIT (E) with regard to the objects contained in the memorandum of the assessee-trust to come to the conclusion that its activities are not genuine. Thus, it has been rightly directed by the Tribunal to the CIT (E) to grant registration under Section 12AA of the Act. The relevant observations recorded by the Tribunal read thus:-. "We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The first reason on the basis of which the Commissioner of Income Tax (Exemptions) has refused to grant registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s they think proper. From the perusal of this clause, we observe that the trustees have been given powers to give property of the trust on lease or on rent. We do not find anything wrong in this clause so as to deny the assessee the registration under Section 12A of the Act. As regards the apprehension of the Commissioner of Income Tax (Exemptions) that his clause may attract the provisions of Section 13 (1)(c) of the Act, we are of the view that the conditions as provided in Section 13 or elsewhere are to be seen by the Assessing Officer at the time of assessment proceedings on yearly basis and not by the CIT (Appeals) while granting registration under Section 12A of the Act. 8. Sections 13 comes into play at the time of granting exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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