TaxTMI 
TaxTMI 
2014 (4) TMI 700
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....al 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 was constituted on 28th June 2010, by way ....
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....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 the assessee has received the loan, out ....
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....f 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 rival submissions and also the impugned order, ....
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....e 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 set aside the impugned order passed by the lear....