AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 959
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....ds of appeal on record : "On the facts and circumstances of the case and in law the ld. CIT erred in not granting registration u/s 12AA on the ground of not having been satisfied about the charitable nature of activities of the trust or genuineness of its activities in spite of the fact that : a. The appellant trust is exclusively engaged in the activity of "Education which is quite evident from the audited accounts as submitted to the ld. CIT and b. The appellant having submitted all documents as called for by the ld. CIT in this respect." 2. That in respect of the application for registration u/s 12AA of the Act, the objects of the assessee trust as annexed at Page 21 of the Paper Book is to promote and provide education and even t....
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.... by the assessee trust. The only reason for not granting exemption u/s 12AA of the Act was that the return under Sec.139(4A) of the Act was not filed by the assessee and in our considered view, merely non-filing of return under the said provision cannot be the ground to deny registration u/s 12AA of the Act to the assessee when the genuineness of the activities is not disputed by the Department and when the objects are clearly laid out and all the details were uploaded by the assessee trust in the ITBA Portal. That at the time of hearing, the learned Departmental Representative could not refute these facts on record. It is well settled law that at the time of granting registration of the Trust u/s 12AA of the Act, the ld. CIT(Exemption) is ....
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....ncome derived by charitable institution from its charitable activities may be a ground for refusing exemption only with respect to that part of the income but cannot be taken to be a synonym to the genuineness of the activities of the trust or the institution. [Para 34] 5. Similar view was reiterated in the case of CIT Vs Babu Ram Education Society reported in (2018) 96 taxmann.com 606 wherein the Hon'ble Allahabad High Court held as under: "Section 12A of the Income-tax Act, 1961 - Charitable or religious trust - Registration of (General) - Whether registration of trust does not involve enquiry into actual activities or application of funds, etc. and at that stage, only enquiry required to be conducted is with respect to object of t....
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....abad /I.T.A.No. 2831&2832/2017 6 655/355 ITR 534. In that judgment that is quoted by the Tribunal in its order, this Court had held as below: "The preponderance of the judicial opinion of all the High Court including this court is that at the time of registration under Section 12AA of the Income-tax Act, which is necessary for claiming exemption under Sections 11 & 12 of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under Section 12AA cannot be refused, ....
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....he assessee has not filed any return therefore there is no question of getting any exemption under Sec.10 and 11 of the Act and hence, there is no jeopardy caused to the Revenue. However, the learned Assessing Officer at the time of assessment proceedings, can take appropriate steps as per law regarding the non-filing of return under Sec.139(4A) of the Act. Considering the totality of the facts and circumstances in this case and following the judicial pronouncements cited supra, we are of the considered view that registration under Sec.12AA of the Act should be granted to the assessee trust. Accordingly, we reverse the order of the ld. CIT(Exemption) and direct him to grant registration u/s 12AA of the Act to the assessee. 9. In the result....
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.... order to be satisfied about the genuineness of charitable activities performed by the assessee trust can call for any relevant documents / evidences for factual verification. In this case, the assessee has failed to furnish requisite details and supporting evidences to the revenue authorities for verification and substantiating its charitable activities. That at the time of hearing before us, the learned Authorised Representative prayed for one final opportunity so that he will produce all the relevant details as called for before the ld. CIT(Exemption). That considering our decision, directing the ld. CIT(Exemption) to grant registration u/s 12AA of the Act, in the totality of the justice, we find it appropriate to provide another opportu....