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TMI Blog2015 (3) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... that none of the expenditure is found to be of non-charitable nature and therefore, even if the activities of the assessee Society and the donations are negligible according to the ld. CIT, the ld. CIT cannot refuse registration u/s 12AA(1) of the Act. CIT(A) is not justified in refusing registration u/s 12AA(1) of the Act and accordingly the order of the ld. CIT(A) is cancelled - Decided in favour of assessee. - I.T.A. No. 615(Asr)/2013 - - - Dated:- 17-3-2015 - A. D. Jain (Judicial Member) And B. P. Jain (Accountant Member) For the Appellant : Sudhir Sehgal For the Respondent : Tarsem Lal, DR ORDER B. P. Jain (Accountant Member) This appeal of the assessee arises from the order of the Commissioner of Income Tax (In short, CIT ), Bathinda, dated 13.08.2013 against rejection of registration u/s 12AA of the Income Tax Act, 1961 (In short, the Act ) . The assessee has raised the following grounds of appeal: 1. That the worthy CIT, Bathinda, has erred in not allowing registration u/s 12AA of the Act which is totally unjustified and not according to law. 2. That the worthy CIT, Bathinda, has also erred in giving its finding that the applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s 12AA. 6. In view of the facts on record, the applicant institution does not qualify to be treated as charitable institution. Moreover, in view of nominal figure of receipts, the application of the society for grant of registration u/s 12AA of the Income Tax Act, 1961 is premature. Hence, its request for grant of registration u/s 12AA is not allowed and the application of EK Umeed Welfare Society, Shakti Nagar, College Road, Fazika filed on 22.03.2013 is hereby REJECTED keeping in view the above facts and relying on the judgment of Hon ble ITAT, Amritsar in the case of M/s Sidana Educational and Welfare Society, Amritsar Vs. CIT-II, Amritsar in ITA No.431/ASR/2009 dated 18.12.2009. 3. The ld. Counsel for the assessee, Mr. Sudhir Sehgal, argued that the assessee has filed before the ld. CIT, a copy of Memorandum of Association and Rules regulation of the Society (Placed at PB 3-5 6-10) alongwith copy of statement of affairs and income expenditure account from 01.11.2012 to 06.03.2013 for the year on 31.03.2013 (paced at PB 11 1321). The Ld. CIT, has not pointed out any of the object of the assessee trust or any activity of the assessee trust as non-charita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, reported in (2015) 370 ITR 517 (Mad) and the relevant parts of the decisions were read which are applicable to the present facts and circumstances of the case. Accordingly, the ld. Counsel for the assessee prayed to reverse the order of the ld. CIT(A) and allow the registration so applied. 4. The Ld. DR, Mr. Tarsem Lal, on the other hand, relied upon the order of the ld. CIT and argued that there are negligible activities and therefore, no reasonable satisfaction can be recorded about the genuineness of the activities of the Trust. 5. We have heard the rival contentions and have perused the facts of the case. The undisputed facts in the present case are that the assessee has filed the application for registration in Form 10A on 22.03.2013 alongwith certificate of registration of Societies, dated 09.11.2012, copy of memorandum of association, copy of Rules and regulation of the Society and copy of statement of affairs upto 06.03.2013. The assessee also filed the balance sheet, income expenditure account for the year ending 31.03.2013, which is a matter of record. The income expenditure account has been reproduced by the ld. CIT at page 2 of his order, while granting re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling of audited accounts for three years as required in Form 10B, the Tribunal held that non-filing of the audited accounts did not make any difference and that did not make the trust ineligible for registration. On appeal. Held, dismissing the appeal, that at the time of application for registration the trust or the institution should produce the certified document evidencing creation of the trust with two copies of the accounts of the trust or the institution relating to the previous year or years. The assessee had submitted the accounts in Form 10A. The invocation of rule 17B would apply, in a case where the charitable institution was registered under section 12AA. The assessee was yet to obtain registration under section 12AA and, hence, rule 17B had no application. If the assessee satisfied the requirement of rule 17A and had submitted Form 10A along with requisite documents, the assessee was entitled to seek registration under section 12AA unless there was some material to decline such registration as is provided in the section. The original authority had not recorded his subjective satisfaction in this case. Also, the reasoning given by him was not in consonance with th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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