2021 (1) TMI 999

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..... on u/s 11 of the Act. The issue of exemption cannot be examined during the process of registration CIT-E had lost sight distinction between the process of registration and the exemption or assessment of income u/s 11 of the Act. Therefore, the reasoning of the ld. Commissioner of Income Tax, Exemption, Pune in denying the grant of registration u/s 12AA of the Act cannot be sustained in the eyes of law. In the circumstances, we set-aside the order of the ld. Commissioner of Income Tax, Exemption, Pune and direct the ld. Commissioner of Income Tax, Exemption, Pune to grant the registration u/s 12AA of the Act. Accordingly, the appeal of the assessee is allowed.
Shri Intu Ri Rama Rao, AM And Shri S. S. Viswanethra Ravi, JM For the Assessee .....

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..... ortal. The said information was duly filed through ITBA portal. On perusal of the information furnished by the appellant society, the ld. Commissioner of Income Tax, Exemption, Pune had observed that the appellant society had (a) not provided information as to source of addition made to the various corpus fund for the financial year 2018-19; (b) the appellant society had not filed the evidence in support of the expenditure incurred for the financial years 2016-17 to 2018-19 respectively; and, (c) the appellant society had not paid any taxes on donations which are credited to the corpus fund before grant of registration. 5. Further, the ld. Commissioner of Income Tax, Exemption, Pune had proceeded to examine the taxability of the contributi .....

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..... able in nature or not and the activities of the trust are genuine. In this regard, reliance on the judgment of the Hon'ble Supreme Court in the case of Ananda Social and Educational Trust vs. CIT, 272 Taxman 7 can be placed. From perusal of the impugned order, it is clear that the ld. Commissioner of Income Tax, Exemption, Pune had rejected the grant of registration u/s 12AA of the Act on none of the above grounds. On examination of financial statements of last three financial years, the ld. Commissioner of Income Tax, Exemption, Pune observed that the donation received towards corpus funds escaped assessment to tax and, therefore, denied the registration. It is trite law that the grant of registration and the issue of assessment or exempti .....

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