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TMI Blog2018 (8) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, in view of above clause in the MOA of the society, in our considered view, the ld CIT(Exemption) was not justified in refusing registration to the assessee society on this ground also. The refusal to grant registration u/s.12AA of the Act to the assessee society is not proper and justified. Similarly, the refusal to grant of approval u/s.80G of the Act is also not justified. Hence, we set aside the order of the CIT(Exemption), Hyderabad and direct him to grant registration u/s.12AA of the Act and approval u/s.80G of the Act to the assessee society. Thus, the grounds of appeal of the assessee are allowed. - ITA No. 347/CTK/2017 - - - Dated:- 1-8-2018 - S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for rejection of the application for grant of registration. 6. For that, since the Assessee has qualified for all the requisite requirements, the application for grant of registration needs to be allowed in the interest of justice. 3. Brief facts of the case are that the assessee society filed application in Form No.10A and Form No.10G on 3.1.2017 seeking registration u/s.12AA of the Act and approval under section 80G(5) of the Act. The CIT(Exemption), Hyderabad rejected the application of the assessee on the following grounds: i) The amendment clause does not specifically stipulate that the amendments shall be carried out with the prior approval of the CIT(E). ii) Similarly, the Dissolution clause does not specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that there is a clause in the MOA and therefore, it was his submission that the CIT(Exemption) was not justified in not granting registration u/s.12AA of the Act and approval under section 80G of the Act as applied by the society. 5. Ld D.R. on the other hand relied on the order of the CIT(Exemption). 10. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. In the instant case, the assessee is a society had applied for registration under section 12AA of the Act in the prescribed Form 10A on 31.7.2017 seeking registration under the Income Tax Act as well as application in Form 10G was filed on the same date by the assessee society for approval u/s.80G of the Act. The sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(d) r.w.s.11(5) of the I.T.Act. 4. With regard to the first objection of the CIT(E) that the amendment clause in the trust deed does not specifically provide that the amendments shall be carried out only with the prior approval of the CIT(E), we find that the issue is covered in favour of the assessee by the decision of this bench of the Tribunal in the case of Balasore Law College Vs. CIT(E), ITA No.459/CTK/2015, order dated 15.02.2017, wherein it was held that, the scope of enquiry contemplated u/s.12A of the Act is limited to the extent of Commissioner getting himself satisfied about object of the Trust and the genuineness of its activities so as to grant or refuse the registration u/s.12A of the Act. A perusal of the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act prohibits investment in violation of Section 13(1)(d) 11(5) of the Act and the trust deed prohibits such an investment by the assessee trust and, therefore, refusal to grant registration to the assessee trust on this count also is an irrelevant ground. Hence, we set aside the order of CIT(E) on this ground also. We therefore, direct the CIT(E) to grant registration u/s.12AA of the Act to the assessee trust. 7. With regard to not granting approval u/s.80G of the Act, we find that the reason given by the CIT(E) that he has refused to grant registration u/s.12AA of the Act, therefore, consequently he had not granted approval u/s.80G of the Act to the assessee trust. As we have granted registration u/s.12AA of the Act to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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