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TMI Blog2016 (6) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... er years, it can not be said that the activities of the assessee are not genuine. With regard to the second objection raised by the Commissioner of Income Tax (Exemptions) that as per clause-12 of the Memorandum of trust, the trustees have been given absolute powers to manage the property as perused the clause-12 of the Memorandum of the trust, whereby the trustees are authorized to demise the immovable property or properties of the trust either from year to year or for any fixed term or for any term of years or no monthly basis at such rent and subject to such conditions as they deem fit and proper and also accept surrender of lease and may manage the property as they think proper. From the perusal of this clause, we observe that the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PER RANO JAIN, A.M. : The appeal filed by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Chandigarh dated 26.6.2015, rejecting the registration to the assessee under section 12AA of the Income Tax Act, 1961 (in short the Act ), 2. Briefly, the facts are that an application under section 12A of the Act was filed by the assessee as on 9.12.2014 before the Commissioner of Income Tax (Exemptions), Chandigarh. After giving an opportunity of being heard the Commissioner of Income Tax (Exemptions) denied the assessee the registration under section 12AA of the Act vide his order dated 26.6.2015. 3. Against this, the assessee has come up in appeal before us, raising the following grounds : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of the Commissioner of Income Tax (Exemptions) that the assessee has not filed return of income of earlier years, the learned counsel for the assessee stated that it is not the good reason to reject the application for registration under section 12A of the Act. For this, reliance was placed on the judgment of the Allahabad High Court in the case of CIT Vs. Shri Advait Ashram Society (2013) 50(I) ITCL 209 (All-HC) and that of Chennai Bench of the Tribunal in the case of Shine Educational Social Welfare Trust Vs. Commissioner of Income-tax, 60 taxmann.com 183 (Chennai - Trib.). 5. With regard to second contention of Commissioner of Income Tax (Exemptions), as far was the applicability of provisions of section 13 (1 (c) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 12A of the Act, are that the objects of the assessee are charitable in nature and the activities are genuine. Just because the assessee has not filed its income tax returns in earlier years, it can not be said that the activities of the assessee are not genuine. Reliance placed by the learned counsel for the assessee on the judgment of the Allahabad High Court as well as the order of the Chennai Bench of the Tribunal are not out of place, whereby it has been held that non-filing of return cannot be one of the reasons for denying registration under section 12A of the Act. With regard to the second objection raised by the Commissioner of Income Tax (Exemptions) that as per clause-12 of the Memorandum of trust, the trustees ..... X X X X Extracts X X X X X X X X Extracts X X X X
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