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TMI Blog2022 (6) TMI 1117X X X X Extracts X X X X X X X X Extracts X X X X ..... on under Section 10(23BBA) and section 10(23C)(v) in our view, neither impinge on genuineness of the Trust nor its charitable/religious nature. In case, assessee claims wrong exemption, it can be dealt with appropriately under the relevant provisions of the Act - a wrong claim of exemption, by itself, cannot debar assessee from getting exemption u/s 12AA - As per settled legal principles, though, assessee may be enjoying registration under Section 12A/12AA of the Act, however, its claim of exemption under Section 11 is not automatic. In case of violation of any of the conditions of sections 11 and 13 of the Act, the claim of exemption can be denied. However, that by itself does not affect the grant of registration under Section 12A/12AA of the Act. Allegations of CIT(Exemption) that the source of investment in construction of building was not properly explained, it is observed, in response to the query raised, assessee has furnished supporting evidence to explain such source. In fact, Learned CIT(Exemption) also accepted the aforesaid factual position - alleging that the return of income only shows the donations to have been utilized for day to day affairs and payments were made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. It is submitted, when the issue relating to the course of action to be taken against the orders passed rejecting the application for registration under Section 12AA and 80 G of the Income-Tax Act, 1961 was kept for discussion in a meeting of working committee of the society, there were conflicting views of members, which necessitated forming of a sub-committee to take a decision on the issue. Only after the recommendations of the sub-committee, steps were immediately taken for filing the appeals. 4. We have heard learned counsel for the assessee and learned Departmental Representative on the issue of condonation of delay. 5. After considering the circumstances leading to delay in filing the appeals, we are satisfied that the delay in filing the appeals was due to reasonable cause. Accordingly, we condone the delay and admit the appeals for adjudication on merits. ITA No.2469/Del/2017 : 6. This appeal is against rejection of application seeking registration under Section 12A of the Act. 7. Briefly, the facts are, assessee is a society registered with Registrar of Societies. Claiming that the objects of the society are of charitable and religious nature, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature the society should be genuine as held in Surya Educational and Charitable Trust 355 ITR 280 ( P H), Fifth Generation Education Society v. CIT 185 ITR 634 (All), Mormugao Port Trust v. CIT 109 ITD 303 (Panaji), Malli Ram Charitable Trust v. CIT 260 ITR (AT) 118 (mr), St. Don Bosco Educational Society v. CIT 90 ITD 477 (Luck) and Aggarwal Mitra Mandal Trust v. DIT 106 ITD 531 (Del.). Activities of the appellant is running a temple at Rohtak (Haryna). In Temple, we are also running a langar and dharamshala, without any discrimination. 8. Thus, learned counsel submitted, without examining the charitable and religious nature of objects of assessee, learned CIT(Exemption) has rejected the application seeking registration under Section 12AA of the Act. 9. Learned Departmental Representative submitted, since, assessee has alleged that its objects were not properly considered, the matter may be restored back to the authority concerned for fresh sdjudication. 10. We have considered rival submissions and perused the material available on record. We have also applied our mind to the decisions cited before us. Undisputedly, assessee is a society registered under the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, there cannot be any doubt regarding the objects of the trust. As regards, genuineness of the society, materials on record reveal that it is carrying out activities to advance its objects. Therefore, there cannot be any serious doubt regarding the genuineness of the society. The so called infraction pointed out by Learned CIT(Exemption), such as, claim of exemption under Section 10(23BBA) and section 10(23C)(v) of the Act, in our view, neither impinge on genuineness of the Trust nor its charitable/religious nature. In case, assessee claims wrong exemption, it can be dealt with appropriately under the relevant provisions of the Act. However, a wrong claim of exemption, by itself, cannot debar assessee from getting exemption under Section 12AA of the Act. As per settled legal principles, though, assessee may be enjoying registration under Section 12A/12AA of the Act, however, its claim of exemption under Section 11 is not automatic. In case of violation of any of the conditions of sections 11 and 13 of the Act, the claim of exemption can be denied. However, that by itself does not affect the grant of registration under Section 12A/12AA of the Act. 12. As regards, the allegatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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