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TMI Blog2018 (2) TMI 2044X X X X Extracts X X X X X X X X Extracts X X X X ..... We, accordingly, set aside the impugned order u/s. 12AA(1)(b)(ii), and direct the ld. CIT(E) to consider the assessee s application for registration afresh on merits, in accordance with law. The assessee-appellant shall extend full cooperation in the matter, even as assured by the ld. AR, furnishing all the details and information as may be called for. The approval u/s. 80G is largely consequential, as also apparent from the impugned order denying the same. In any case, the same would require reconsideration in view of the assessee s application for registration being, in consequence to this order, being required to be adjudicated afresh. The order denying approval u/s. 80G is accordingly also set aside on the same terms. Assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 12AA as well as for approval u/s. 80G, was premature. We are unable to agree with the same, and which clearly weighed with the ld. CIT (E) in denying the registration (refer para 9 of the impugned order). The reason is simple. The registration would be, where so, granted latest from the date of the application therefor. Any income or even voluntary contribution received by the applicant, which is uncertain as to its time, would, where not coverd by the period of registration, not qualify for exemption u/s. 11. How could then the application be regarded as premature? No doubt, the competent authority has to be satisfied about the genuineness of the activities of the assessee-trust. However, how could they be regarded as not ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as noted by him at para 4 of his order, so that his non satisfaction in its respect would even independently disqualify an application for registration, making his order sustainable in law. This satisfaction, as we understand, is as to the objects constituting a charitable purpose within the meaning of the term u/s. 2(15) of the Act, so that, when pursued, the assessee s activity/s constitutes a charitable activity/s. And, without doubt, registration could validly be denied where it is not so. The ld. CIT(E) was in our opinion therefore required to issue a finding with respect to the objects of the trust, i.e., that they do not constitute a charitable purpose under the Act. His order is sans any such finding. Apart from a mention that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are also unable to comprehend as to how could the assessee be show caused on 11.08.2017, by which date the report of the ITO(E), called for by the ld. CIT(E), had not been submitted to him? Does it mean that the show cause was issued in anticipation? A show cause is not an empty formality, but an essential ingredient in the judicial determination process, being in fact specifically mandated by section 12AA(1)(b)(ii), reproduced as under: Procedure for registration 12AA . (1) The Principal Commissioner or Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) or clause (aa) of sub section (1) of section 12A, shall- (a) call for such documents or information from the trust or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the reasons afore-said, is thus not sustainable in law. We, accordingly, set aside the impugned order u/s. 12AA(1)(b)(ii), and direct the ld. CIT(E) to consider the assessee s application for registration afresh on merits, in accordance with law. The assessee-appellant shall extend full cooperation in the matter, even as assured by the ld. AR, furnishing all the details and information as may be called for. The approval u/s. 80G is largely consequential, as also apparent from the impugned order denying the same. In any case, the same would require reconsideration in view of the assessee s application for registration being, in consequence to this order, being required to be adjudicated afresh. The order denying approval u/s. 80G is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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