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TMI Blog2022 (1) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... we remit the issue back to ld. CIT(E) who, on the basis of documents filed by assessee or to be filed by the assessee, will readjudicate the issue and will decide the appeal accordingly. The assessee will be at liberty to file any other documents in support of its claim for registration - Appeal of the assessee is allowed for statistical purposes. - ITA No.509/Lkw/2017 - - - Dated:- 13-12-2021 - Shri A.D Jain, Vice President And Shri T.S. Kapoor, Accountant Member For the Appellant : Shri Rakesh Garg, Advocate For the Respondent : Smt. Sheela Chopra, CIT, DR ORDER PER T.S. KAPOOR, A.M.: This is an appeal filed by the assessee against the order of ld. CIT(Exemption) dated 20.6.2017. The appeal was earlier disposed of by the Tribunal vide order dated 7.9.2018 and wherein the registration claimed by the assessee u/s 12A of the Act was granted. However, the Revenue preferred an appeal before the Hon'ble High Court and Hon'ble High Court remitted back the issue before the Tribunal to reajudicate the issue by holding as under: While answering the substantial questions of law in favour of the revenue, the matter is remanded to the Tribunal to con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to poor and needy people by way of scholarship and the activities of the trust are genuine and same are being carried out in consonance with its objects and as held by Hon'ble Apex Court in the case of Ananda Social and Educational Trust. The ld. CIT(E) at the time of considering registration to an assessee can grant registration on the basis of proposed activities also. The ld.AR submitted that Tribunal while granting registration to the assessee u/s. 12A of the Act had relied on the judgment of Hon'ble Allahabad High Court in the case of CIT vs. Red Rose School, 212 CTR 594. It was submitted that Hon'ble High Court in the present case has held that though for granting registration u/s. 12A deep scrutiny of accounts of document is not required as it can be made at the time of assessment but mere submission of the application and statement of the objects of the Trust is not sufficient before granting registration u/s. 12A of the Act. The ld. AR submitted that the documents filed by the assessee before ld. CIT(E) clearly established the genuineness of activities of the Trust and therefore it was prayed that the registration be granted to the assessee after recording sat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust provides entire details and documentary evidences and the list is provided therein at pages 10 11. Similarly, at page 5 of the paper book trust has filed copy of trust deed, copy of form 10A, list of trustees with PAN, copy of bank passbook. Likewise, from pages 6 to 13 there are series of correspondence entered into between assessee-trust and the Department which demonstrate that documentary evidences were filed with the Revenue authorities. We take guidance from the judicial principles as enumerated in the decision of Hon'ble Allahabad High Court in the case of CIT vs. Red Rose School (supra) and the decision of the Hon'ble Karnataka High Court in the case of Director of Income-Tax (Exemptions) vs. Meenakshi Amma Endowment Trust (supra) wherein it is held that the Id. Commissioner of Income-tax (Exemptions) while considering the application for registration under section 12AA of the Act will essentially look into the genuineness of the activities of the trust and make enquiries in this regard, but at the same time scope of section 12AA does not seek that Id. Commissioner of Income-tax (Exemptions) will also see whether the income derived by the trust is spent fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve directed for the registration of the Trust U/s 12AA of the Act of 1961 rather for that the matter should have been remanded to the Commissioner (Exemption). In the alternative, it could have granted registration only if the satisfaction is recorded on issues, as provided U/s 12AA of the Act of 1961. In the instant case, satisfaction of the nature required U/s 12AA (B) has not been recorded by the Tribunal, thus, interference in the order of the Tribunal be made. The appeal has been contested by the counsel appearing for the assessee but he could not satisfy that the Tribunal before issuing the direction of registration of the Trust U/s 12AA of the Act of 19961 recorded its satisfaction on the object of the Trust and genuineness of its activities. Perusal of the order passed by the Income Tax Appellate Tribunal shows criticism of the order passed by the Commissioner (Exemption) but failed to record satisfaction of the nature required U/s 12AA (B) of the Act of 1961. It is not only satisfaction in regard to the object of the Trust to be charitable but even the genuineness of its activities. The aforesaid twin factors are required to be satisfied before a direction f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne the documents filed by the assessee before ld. CIT(E) for the purpose of examination of genuineness of the activities of the Trust. In this respect we find that pg. 10 is the reply filed by the assessee against various queries raised by the ld. CIT(E) Para 5 of the said reply states as under: The Trust is engaged in giving scholarship to poor and needy students, has under taken construction, renovation/repairs etc. of temple Shri Anant Kripa Dham Mandir adopted by the Trust. Beside the above trust is organizing Bhandara on various festivals for which public information is circulated by distributing the hand bills and a copy of such hand bill is enclosed for ready reference. 7. We find that as enclosure to above para the assessee filed index of all ledger account along with bank passbook along with corpus donations and acknowdgment of ITRs on earlier years. At pg.12 again there is a copy of letter addressed to CIT-1 by the assessee wherein the supporting documents regarding genuineness of activities were stated to have been filed before him. However, the paper book filed by the assessee does not contain any evidences regarding genuineness of activities filed before CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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