2016 (6) TMI 1196

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....ts are that an application under section 12A of the Act was filed by the assessee as on 9.12.2014 before the Commissioner of Income Tax (Exemptions), Chandigarh. After giving an opportunity of being heard the Commissioner of Income Tax (Exemptions) denied the assessee the registration under section 12AA of the Act vide his order dated 26.6.2015. 3. Against this, the assessee has come up in appeal before us, raising the following grounds : "1. That the Ld. Commissioner of Income Tax has erred in law as well as on facts in rejecting registration under section 12AA of the Act which is arbitrary & unjustified. 2. That the registration has been refused only on the basis of suspicion, conjectures and surmises which is not per....

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....reliance was placed on the judgment of the Allahabad High Court in the case of CIT Vs. Shri Advait Ashram Society (2013) 50(I) ITCL 209 (All-HC) and that of Chennai Bench of the Tribunal in the case of Shine Educational & Social Welfare Trust Vs. Commissioner of Income-tax, 60 taxmann.com 183 (Chennai - Trib.). 5. With regard to second contention of Commissioner of Income Tax (Exemptions), as far was the applicability of provisions of section 13 (1 (c) of the Act, reliance was placed on the order of the I.T.A.T., Chandigarh Bench in the case of Sri Guru Har Raj Ji Religious and Charitable Trust Vs. CIT(Exemptions) in ITA No.323/Chd/2015 dated 27.4.2016 and another order of I.T.A.T., Chandigarh Bench in the case of Bhai Mansa Singh Ji Wel....

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....nuine. Reliance placed by the learned counsel for the assessee on the judgment of the Allahabad High Court as well as the order of the Chennai Bench of the Tribunal are not out of place, whereby it has been held that non-filing of return cannot be one of the reasons for denying registration under section 12A of the Act. With regard to the second objection raised by the Commissioner of Income Tax (Exemptions) that as per clause-12 of the Memorandum of trust, the trustees have been given absolute powers to manage the property. We have perused the clause-12 of the Memorandum of the trust, whereby the trustees are authorized to demise the immovable property or properties of the trust either from year to year or for any fixed term or for any ter....