9911796707
TMI Blog2020 (12) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... asized that the assessee was not accorded adequate opportunity of hearing inasmuch as the ld. CIT(E), just after obtaining information from the assessee, passed the impugned order without confronting with his point of view or seeking clarifications from the assessee as to carrying or non-carrying out of any charitable activities. A prayer was made that another opportunity may be granted to explain the factual matrix in detail before the ld. CIT(E). No serious objection was raised by the ld. DR in this regard. In view of the position as obtaining in the instant case, we are satisfied that it would be in the fitness of things if the impugned order is set-aside and the matter is restored to the file of the ld. CIT(E). We order accordingly and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA and thus turned down the registration. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. We have heard the rival submissions through virtual court and gone through the relevant material on record. The ld. AR vehemently argued that the ld. CIT(E) was not justified in examining the activities of the trust for the purpose of granting or refusing the registration. In this regard, we find that section 12AA of the Act deals with the procedure for registration. Sub-section (1) provides that the CIT, on receipt of an application for registration, shall: `(a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about, - (i) the genuineness of activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in a case where the trust is already set up for a number of years and thereafter an application is filed for registration of the trust, no fault can be found with CIT(E) examining the genuineness of the activities actually carried out by the assessee for ascertaining whether or not the requisites of charitable nature of activities are fulfilled. Both the clauses (a) and (b) of section 12AA(1) of the Act emphasize on CIT(E) satisfying himself, inter alia, about the genuineness of activities. Acceptance of the contention of the ld. AR in all circumstances and across the board would mean negating the mandate of section 12AA, which is patently unwarranted. We are confronted with an instance of the second situation. The assessee was set up in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng is beyond our comprehension and breaches all the accounting norms. Interest income, or for that matter, any income needs to necessarily taken to the Income and Expenditure account. It is impermissible to take items of income straight to the Balance sheet. Further, there is nothing in the Annual accounts to demonstrate that `Add : Current' represents interest income credited to the Fund account and `Less : Utilised' shows the actually expenditure incurred on the charitable activities. 8. The ld. AR strenuously emphasized that the assessee was not accorded adequate opportunity of hearing inasmuch as the ld. CIT(E), just after obtaining information from the assessee, passed the impugned order without confronting with his point of view or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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