2020 (5) TMI 122

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....d. CIT(E) has erred on facts and in law in rejecting the application by incorrectly holding that assessee has failed to produce details and documents in support of his claim for registration ignoring that assessee in response to notice dated 03.10.2019 has filed the reply vide letter dated 13.11.2019 submitting the documents as required and in response to notice dated 18.11.2019 & 28.11.2019 has filed the response stating that it has not received any questionnaire as stated in the notice." 2. The ld AR submitted that the assessee society is registered under Rajasthan Sanstha Registration Act, 1958 vide registration certificate dated 13.01.2003. The main object of the society is to carry out various welfare activities for the students and....

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.... noticed that the assessee is indulged in commercial activities of running of hostels and getting receipts from hostels. (c) The assessee has not submitted any such details and other information about the charitable activities as per its objects. (d) Sufficient opportunity has been provided to produce details and documents in support of its claim for registration u/s 12AA of IT Act, 1961 but assessee has failed to do so. 4. It was submitted that against the questionnaire dated 03.10.2019 containing 26 issues, the assessee filed point wise reply dated 11.11.2019. In this reply at Point No. 7, 22 & 23, it was explained that it is running a hostel where the students from small cities are provided accommodation at very low ....

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.... annual accounts of three years along with the application. Thus, when neither the Act nor the Rules provide for producing the original document as a condition precedent for granting registration, the same should not be denied on this ground. So far as running of the hostel is concerned, as explained above, it is as per the object of trust and no commerciality is involved as evident from the audited accounts. The assessee has submitted all the evidence in support of a charitable activity carry out by it in which no discrepancy was found by Ld. CIT(E). So far as the questionnaire dated 18.11.2019 is concerned, the same was not provided to the assessee even when requested twice. In any case since detailed reply has been furnished in respon....

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....n that the applicant is actually carrying out any charitable activities as per its objects. It was accordingly submitted that sufficient opportunity was provided to the applicant to produce details and documents in support of its claim for registration U/s 12AA of the Act but the applicant has failed to do so. Accordingly, the application seeking registration U/s 12AA of the Act was rightly rejected by the ld. CIT(E). It was accordingly submitted by the ld CIT DR that no interference is called for in the order so passed by the CIT(E). Alternatively, it was submitted that where the Bench so decide, the matter may be remanded back to the file of ld. CIT(E) to examine the same afresh. 7. We have heard the rival contentions and gone through ....