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TMI Blog2022 (12) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... e to challenge such an order before the higher appellate authority. We are unable to accede to the contention of the AR and agree with the contention of the CIT-DR that in absence of any specific finding recorded by the Ld CIT(E), there cannot be any presumption regarding the findings of the CIT(E) regarding the objects and activities of the assessee society. Regarding non-filing of return of income for the financial year F.Y. 2018-19 relevant to A.Y. 2019-20, AR has stated at the Bar that it is a fact that the assessee has not filed the return of income for the said assessment year but at the same time, it was submitted that merely non-filing of the return of income cannot be a basis to challenge the genuineness of the activities actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax (Exemptions), Chandigarh [ in shor t the Ld. CIT(E) ] passed u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 (in short the Act ) dated 12/03/2021, wherein the assessee has challenged the denial of registration under section 12AA(1)(b)(ii) of the Act. 2. At the outset it is noticed that there is a delay of 73 days in filing the present appeal as pointed out by the Registry. 3. During the course of hearing the Ld. AR submitted that due to COVID-19 pandemic the appeal could not be filed in time and the matter is squarely covered by the decision of Hon ble Supreme Court wherein the limitation period has been extended. 4. The Ld. DR did not raise any specific objection. Hence in view of the fact the appeal could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned order, it was submitted that the Ld. CIT(E) referring to the assessee society balance sheet for the F.Y. 2019-20 has held that the assessee society has diverted certain receipts in the name of corpus to the balance sheet which should have been taken as income in the Income Expenditure account and it was held that the corpus fund shown by the assessee society during the F.Y. 2019-20 and for any other previous years is the income of the applicant and same become liable to pay tax. It was held by the Ld CIT(E) that before the grant of registration, all voluntary contributions including the ones with specific direction that they shall form part of the corpus are the income of the trust. In this regard, it was submitted by the ld A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not correct. It was further submitted that there is no specific finding recorded by the Ld. CIT(E) regarding the objective of the assessee trust and therefore in absence of specific findings, the presumption cannot be drawn that the objective of the assessee society being charitable in nature have been duly examined by the Ld. CIT(E). 8. We have heard the rival contentions and purused the material available on record. The provisions of section 12AA provides that the CIT(E) after receipt of application and calling for such documents and information as he thinks necessary and after making such enquiries as he may deem necessary and after satisfying himself about the objects of the assessee society and the genuineness of its activities s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llenge the genuineness of the activities actually been undertaken by the assessee society in that year and extrapolating that to all subsequent years. It was submitted that even where the return of income was not filed, the assessee society is maintaining its regular books of accounts accounting for its receipts and expenditure relating to various charitable activities which were carried out by the assessee society and given that the Ld CIT(E) has not called for the books of accounts, there was no occasion for the assessee society to furnish the same and where so permitted, the assessee society shall produce its books of accounts for necessary examination by the Ld CIT(E). 10. Taking into consideration the entirety of facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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