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TMI Blog2021 (7) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... have also not disputed the charitable nature of the activities conducted by the assessee trust. Meaning thereby, all the relevant records were submitted before the Ld. CIT(Exemption) and he had verified the same and was satisfied on this aspect fulfilling the requirement of Section 12AA of the Act. There is no finding on facts that the activities carried out by the assessee are not genuine - CIT(Exemption) has not mentioned in his finding that the objects of the trust were not in order or that the application made for registration was also not in accordance with law. In absence of these findings, just because, the taxes were not paid on the donations/voluntary contributions received cannot be the ground for rejection of application u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Exem), Pune erred in considering activities of providing Primary and Secondary education as a business model and not genuine educational activities and thereby erred in granting registration u/s 12AA of the I.T. Act, 1961 . 2. The solitary grievance of the assessee is the rejection of application for the grant of registration u/s 12AA of the Act by the learned Commissioner of Income Tax (Exemption) (hereinafter called as ld.CIT(E) ). 3. The brief facts in this case are that the assessee had made online application in Form No.10A for approval of the trust / institution u/s 12AA of the Act on 27.11.2019 under the category of charitable trust / institution. The assessee trust is registered under the Bombay Public Trust Act, 1950 with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason why the application for registration u/s 12AA of the Act of the assessee was rejected by the ld.CIT(E) was that on the corpus fund created through receipt of donations the consequent taxes which were supposed to be paid were not paid by the assessee at the time of making the application for registration u/s 12AA of the Act. 6. At the time of hearing, the learned counsel for the assessee brought to our notice at pages 36 and 37 of the Paper Book i.e., the acknowledgment of the return filed by the assessee dated 21.01.2020 wherein the self-assessment tax of ₹ 1,21,222/- had been paid by the assessee. That further, the counsel for the assessee submitted that at the time of granting of registration as per the requirement of Sec.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was of the opinion that all these voluntary contributions forms part of the corpus fund of the trust and hence, it is income of the assessee. Thus, on the said income, assessee trust was liable to pay the tax as per law. Since the requisite taxes were not paid by the assessee trust, the ld.CIT(E) was of the opinion that the assessee should have paid the taxes before the date of application for registration u/s 12AA of the Act. While deciding this issue, we had referred to the decision of Hon'ble Supreme Court in the case of Anand Social and Educational Trust Vs. CIT, 272 Taxman 7 (SC). In our decision (supra), we had observed as follows : 6. We have heard the submissions of rival sides and perused the materials available on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Exemption) (2020) 208 TTJ (Pune) 296 that when the objects of the trust were not disputed by the Department, nor they have disputed genuineness of activities of the assessee trust, then non filing of return u/s. 139(4A) of the Act cannot be the ground to deny registration u/s.12AA of the Act to the assessee. It is only at the assessment proceedings, the Assessing Officer can take appropriate steps as per law regarding the non-filing of return. However, at the time of granting registration, the object of the assessee trust has to be looked into and genuineness of the activities of the assessee trust should be considered. Shree Lakadipool Vitthal Mandir 7. Reverting to the facts of the present case, the Ld. CIT(Exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby, all the relevant records were submitted before the Ld. CIT(Exemption) and he had verified the same and was satisfied on this aspect fulfilling the requirement of Section 12AA of the Act. Shree Lakadipool Vitthal Mandir Considering the aforesaid judicial pronouncements, facts and circumstances in this case, we are of the considered view that this is not a fit case for rejection of application for registration u/s.12AA of the Act on the reasons mentioned in the order of the Ld. CIT(Exemption). There is no finding on facts that the activities carried out by the assessee are not genuine. Further, the Ld. CIT(Exemption) has not mentioned in his finding that the objects of the trust were not in order or that the application made for regi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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