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TMI Blog2018 (11) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... ction order of CIT(E) and directing him to grant registration to the assessee society notwithstanding that the assessee society has not complied with the provisions of section 12A(1)(b) of the Act consequences to which the activities of the assessee society become nongenuine? 2. Whether on the facts and in circumstances of the case and in law the Hon'ble ITAT is right in allowing 12AA registration to the assessee society in spite of the fact that the activities of the society are not genuine? 3. The facts of the case are that the application for seeking registration u/s 12AA of the Act was filed before the ld. CIT(E) on 31.3.2017. Subsequently, certain details and information were called for and on perusal of the same, it was gathered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly with equal force in context of registration under section 12AA as similar safeguards have been provided in terms of accumulation and utilisation of surplus so generated for the purposes of charitable purposes in terms of section 11(2) of the Act. 19. Further, there is no dispute that the objects of the assessee society are not chartiable or the activities of the assessee society are not being carried on in accordance with the stated objectives of imparting education for which it has been established. There is no adverse finding recorded by the ld CIT(E) in this regard. 20. In light of above discussions and in the facts and circumstances of the case, we are of the considered view that the ld CIT(E) was not correct in denying the regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the material available on record. The first reason on the basis of which the Commissioner of Income Tax (Exemptions) has refused to grant registration to the assessee is that the assessee has not been filing its income-tax returns in the earlier years. We do not find that it is a good reason to reject the application for registration since the two conditions which the Commissioner of Income Tax (Exemptions) has to satisfy while granting the registration 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 cannot be said that the activities of the assessee are not genuine. Reliance pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 exemption under Section 11 of the Act and not at the time of granting registration under Section 12A of the Act. The only two requirements as stated hereinabove while granting registration under Section 12A of the Act, are with respect to the charitable nature of the objects of the assessee and genuineness of the activities. Since we observe that no adverse remarks have been made by the Commissioner of Income Tax (Exemptions) with regard to the objects contained in Memorandum and as stated hereinabove that the observations of the Commissioner of Income Tax (Exemptions) do not lead to the conclusion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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