2014 (4) TMI 700

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.... Amit Shukla, J. M. The present appeal has been preferred by the assessee challenging the impugned order dated 29th August 2011, passed by the learned Director of Income Tax (Exemption) [DIT(E)], Mumbai, under section 12AA(1)(b) of the Income Tax Act, 1961 (for short "the Act"), rejecting the assessee's application for registration under section 12A. 2. Facts in brief:- The assessee, which w....

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....eed executed on 19th September 2010. The trust has given three cheques of Rs. 5 lakhs each which has been given to the transferee to be realized as and when the funds are available with the trust. He further noted that the assessee trust has also received loans from various persons and the creditworthiness of the said person could not be established. He noted the names of the nine person from whom....

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....n its object elaborated in the Memorandum of Association. 4. The learned Departmental Representative, on the other hand, strongly relied upon the order of the DIT(E) and submitted that it was within the purview of the DIT(E) to examine the genuineness of the loan received by the assessee trust. Hence, there is no mistake in the order of the learned DIT(E). 5. After carefully considering the ....

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....ormation to satisfy about the genuineness of the objects and also about the genuineness of the activities of the trust and then only he can either grant or refuse the registration. The law mandates that he has to examine the objects and also the genuineness of the activities. Therefore, in this case, we feel that the matter should be restored to the file of the learned DIT(E) and, accordingly, we ....