TaxTMI 
TaxTMI 
2012 (11) TMI 1187
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....appeal is in respect of rejection of application for grant of approval under section 80G(5)(vi) of the Act. 2. The brief facts of the case are that the assessee trust moved application dated 20.12.2011 in Form No.10G for grant of approval under section 80G of the Act. Similarly, application dated 20.12.2011 in Form No.10A for grant of registration under section 12AA was field before the CIT on 26.12.2012. The CIT rejected both the applications of the assessee on the ground that the assessee trust has not carried out any charitable activity. The CIT noted that he was unable to satisfy himself about the genuineness of the activities of the assessee trust. Both the orders of the CIT have been challenged by the assessee on the ground that th....
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....le was put up to him at Agra or was taken to Kanpur for his approval" 3.1 The learned Departmental Representative relied upon the order of the CIT. 4. We have heard the ld. Representatives of the parties and records perused. The admitted facts of the case are that the assessee filed necessary applications for grant of registration under section 12AA of the Act and for approval under section 80G(5) of the Act on 26.12.2012. The CIT passed the orders dated 21.06.2012. Whether under the facts and circumstances of the case the orders passed by the CIT is in accordance with law. To examine this issue we would like to refer the relevant section 12AA of the Act which is reproduced as under:- "12AA. (1) The Commissioner, on receipt o....
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....n was received under clause (a) [or clause (aa) of sub-section (1)] of section 12A.] [(3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) [or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)]] and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution: Provided that no order under this sub-section shall be passed unless such trust or instit....
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.... in person in his office on the date of hearing, it is to be mentioned that the charge of the CIT-1, Agra during the period was being held as additional charge by Shri B.P.S. Bisht in addition to his regular charge of the CIT-1, Kanpur. From the order sheet of the file it is not clear as to whether the file was put up to him at Agra or was taken to Kanpur for his approval" 5.3 The assessee has furnished a copy of trust deed. According to that, the objects of the trust are as under:- (Page no.6 of Paper Book) "4. OBJECTS a. Educational - to run, maintain or assist any educational or vocational training or to grant individual scholarships for poor, deserving and needy students for elementary and higher education. ....
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....nsferred to some other similar Trust/ Organization whose objects are similar to those of this Trust subject to statutory permissions, if any, under any law for the time being in force." 6. Section 12AA laid down procedure to be followed by the CIT for granting registration of a trust. In the said section 12AA the power and duty provided to the CIT and not his subordinate or ITO HQ (Tech.). On consideration of relevant provisions of the Act and facts of the case including noted above we find that the CIT did not act according to law and provisions of section 12AA & 80G of the Act. He did not apply his mind before rejecting assessee's applications. On query of the assessee under RTI Act, it was replied that as per order sheet entry it is n....
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....provisions of Rule 11AA(6) of the IT Rules have been violated. Nothing could be attributed to the assessee for taking time in not complying with the directions of the ld. CIT because the ld. CIT never issued any direction as per above findings. Therefore, the assessee is entitled for grant of renewal of approval u/s. 80G(5) of the IT Act; (iv). That the reasons given by ITO (Tech.) for refusal to renew the approval u/s. 80G(5)(vi) are not valid in the eyes of law and since the assessee enjoyed registration u/s. 12AA of the IT Act continuously and also complied with the provisions of section 80G(5), therefore, renewal of approval should not have been rejected. 7. In view of the above discussion and findings, we set aside th....