Appeal delay due to pandemic condoned, registration denial challenged under section 12AA(1)(b)(ii). Tribunal stresses thorough examination.

The appeal was delayed by 73 days due to the COVID-19 pandemic, but the delay was condoned. The denial of registration under section 12AA(1)(b)(ii) was challenged by the assessee, arguing that the rejection was unjustified. The Tribunal emphasized the need for specific findings on the objectives and activities of the society. The non-filing of the income return for the relevant year was noted, but the Tribunal directed a fresh examination to assess the genuineness of the activities. Ultimately, the appeal was allowed for statistical purposes, stressing the importance of a thorough examination by the authorities.

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Issues:
Delay in filing the appeal due to COVID-19 pandemic, denial of registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961, examination of the objective and activities of the assessee society for charitable nature and genuineness, non-filing of return of income for the financial year F.Y. 2018-19 relevant to A.Y. 2019-20.

Delay in Filing Appeal:
The appeal was delayed by 73 days due to the COVID-19 pandemic. The delay was condoned and the appeal was admitted for adjudication based on the extension of the limitation period by the Hon'ble Supreme Court.

Denial of Registration under Section 12AA(1)(b)(ii):
The assessee challenged the denial of registration under section 12AA(1)(b)(ii) of the Act. The application seeking approval under section 12AA was rejected by the Ld CIT(E) based on findings related to the diversion of receipts in the balance sheet and treatment of corpus funds. The assessee argued that the denial was unjustified as there were no doubts raised regarding the charitable nature of the society's objectives or the genuineness of its activities.

Examination of Objective and Activities of the Assessee Society:
The Ld CIT(E) raised doubts about the genuineness of the activities undertaken by the assessee trust since its inception in 2018. The Ld CIT DR argued that without specific findings on the objectives of the trust, it cannot be presumed that the activities were charitable in nature. The Tribunal emphasized the need for the Ld CIT(E) to pass a written order reflecting satisfaction or rejection based on the objects and activities of the society.

Non-filing of Return of Income for F.Y. 2018-19:
The assessee did not file the return of income for F.Y. 2018-19 relevant to A.Y. 2019-20. However, the assessee maintained regular books of accounts for charitable activities. The Tribunal directed the matter to be sent back to the Ld CIT(E) for a fresh examination after calling for books of accounts and documents to assess the genuineness of the activities undertaken by the assessee society.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the importance of a thorough examination by the Ld CIT(E) to determine the charitable nature and genuineness of the activities of the assessee society. The decision highlighted the need for specific findings and a written order to support the registration or denial under section 12AA of the Income Tax Act, 1961.

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