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TMI Blog2021 (4) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, not at the time of grant of registration. The very basis of order of the ld. CIT (Exemption) cannot be sustained in the eyes of law. In any event, CIT (Exemption) should not have come to conclusion that the objects of the appellant society are not charitable in nature and the genuineness of the activities are not established based on the above observations, these observations even are held to be correct cannot lead to the conclusion that the objects are not charitable and genuineness of the activities are in doubt. Commissioner of Income Tax (Exemption) had not referred to any material on record to show that income of trust was applied for the purposes other than the purposes for which the appellant society was formed. Therefore, the order of the ld. Commissioner of Income Tax (Exemption) is set-aside. The ld. Commissioner of Income Tax (Exemption) is directed to grant the registration u/s. 12AA - Decided in favour of assessee. - ITA No. 526/PUN/2020 - - - Dated:- 24-3-2021 - Inturi Rama Rao , Member ( A ) and Partha Sarthi Chaudhury , Member ( J ) For the Appellant : Rohan Dedhia For the Respondents : Deepak Garg ORDER Per Inturi Rama Rao , AM This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration, the appellant is before us in the present appeal. 6. Before us, the ld. AR for the appellant contended that the appellant society had been carrying on various objects and one of the objects is conducting the seminars for the benefits of the doctors which is also part of the objects of the appellant society. He further submitted that the bills are in the name of the third party for the reasons that it represents the reimbursement of the expenses incurred by the resources person i.e. Speaker in the seminar. Thus, it was submitted that the observations made by the ld. Commissioner of Income Tax (Exemption) were not relevant to justifying denial of grant of registration u/s. 12AA of the Act. 7. On the other hand, ld. CIT-DR relied on the orders of the lower authorities. 8. We heard the rival submissions and perused the material on record. The only issue in the present appeal relates to the grant of approval of registration u/s. 12AA of the Act. The ld. Commissioner of Income Tax (Exemption) had denied the grant of approval u/s. 12AA of the Act on the premise that: (i) The appellant society had not carried on any activity; (ii) The bills for the expenditure i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society but were utilized only for the purpose of making the FDs with the bank. Again this is an issue of assessment which can only be considered at the time of assessment, not at the time of grant of registration. The Co-ordinate bench of the Tribunal in the case of Brahman Sabha Karveer vs. CIT, Exemption vide ITA No. 626/PUN/2020 order dated 07.01.2021 (wherein both of us) are party held as follows:- 9. .......... it is settled proposition that the issue of grant of registration u/s. 12AA of the Act and the examination of exemption u/s. 11 of the Act are two different and distinct procedures prescribed under the Act. The issues of exemption u/s. 11 of the Act cannot be examined at the stage of grant of registration u/s. 12AA of the Act because the stage of examination of issues u/s. 11 of the Act would arise only after grant of registration u/s. 12AA of the Act. This reasoning was applied by the Jurisdictional High Court in the case of CIT (Exemptions) vs. Mumbai Metropolitan Region Development Authority, 115 taxmann.com 71 and Goa Industrial Development Corp. vs. CIT, 116 taxmann.com 42 wherein the Hon'ble Jurisdictional High Court held that the mere introduction provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... velopment Centre vs. ITAT, 251 ITR 852; (iv) New Life in Christ Evangelistic Association vs. CIT, 246 ITR 532; (v) N.N. Desai Charitable Trust vs. CIT, 246 ITR 452; and, (vi) CIT vs. Vijay Vargiya Vani Charitable Trust, 369 ITR 360. 11. From the perusal of the impugned order, it is crystal clear that the ld. Commissioner of Income Tax, Exemption, Pune 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 given by the ld. Commissioner of Income Tax, Exemption, Pune cannot be sustained in law and, accordingly, we set-aside the order of the ld. Commissioner of Income Tax, Exemption, Pune dated 18.09.2020 passed u/s. 12AA of the Act 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. 10. To the same effect, the decisions of the Hon'ble M.P. High Court in the case of CIT vs. D.P.R. Charitable Trust, 61 DTR 410 (MP) and CIT vs. Divine Shiksha Samiti, 428 ITR 552 (MP) and the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. Mane ..... X X X X Extracts X X X X X X X X Extracts X X X X
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