2019 (11) TMI 309

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.... in a matter where registration under Section 12AA has been denied by Commissioner Income Tax can itself pass an order directing Commissioner to grant registration or should leave the matter to be considered by Commissioner Income Tax to consider matter afresh giving rise to further litigation in the matter? (2) Whether co-extensive appellate jurisdiction conferred upon Income Tax Appellate Tribunal being a last court of fact can be read to confer upon it similar powers as been exercised by authorities below whose orders are considered in appeals by Tribunal? The questions of law framed by this Court have been answered by the Larger Bench in the case of Commissioner of Income Tax Exemption U.P. State Cons. & Infra. Vs. M/s Reham....

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....he Act, 1961 has not been recorded. The Tribunal has issued a direction for registration of the Trust/Institution after referring several judgments on the issue without marshalling evidence with a finding to show satisfaction for registration of the Trust, as required under Section 12AA of the Act, 1961. In absence of the satisfaction, as required, the judgment of the larger Bench in the case of Income Tax Exemption U.P. State Cons. & Infra. (supra) would apply. The order of the Tribunal is thus not sustainable. The Tribunal could have remanded the matter to the Commissioner (Exemption) for consideration of the case afresh. The assessee failed to produce relevant documents before the Commissioner to record satisfaction for registration u....

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.... appeal was allowed by the Tribunal. A direction for registration of the Trust has been given, but perusal of the impugned order, we do not find that the Tribunal has considered the relevant material to come to the conclusion that the assessee is involved in charitable activities. It has not recorded its finding in reference to the material produced before it and that too after holding finding of the Commissioner (Exemption) to be perverse. In fact the order impugned herein shows that in reply, the assessee has stated that all the relevant documents are available for perusal thus, it can be verified. It shows that no relevant document was produced before the Commissioner (Exemption) to prove that the assessee is involved in charitable ac....

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....activities or that finding of the Commissioner (Exemption) is perverse. Accordingly, we find reason to cause interference in the order passed by the Tribunal. The impugned order dated 27.09.2018, passed by the Income Tax Appellate Tribunal is accordingly set aside with remand of the case, to decide the appeal afresh. The Tribunal would take into consideration all the observations made by this Court for remand of the case to the Commissioner (Exemption) in the facts and circumstances of the case. The direction for remand of the case to the Commissioner (Exemption) has not been given by this Court for the reason that the order aforesaid is not under challenge. The registration of Trust, after the order of Tribunal, is not sustainable....