2021 (3) TMI 1152

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....ind that the reasons stated by the assessee are bonafide which really prevented the assessee to file the present appeal in time. Therefore, the delay of 97 days are condoned. 3. The assessee raised 5 grounds amongst which the only issue is to be decided is as to whether the CIT(Exemption) justified in rejecting the application filed seeking registration u/s. 12AA of the Act in the facts and circumstances of the case. 4. The ld. AR, Shri Bhuvanesh Kankani submits that the assessee made an application seeking registration u/s. 12AA of the Act on 24-09-2019. The assessee is a charitable trust registered under Bombay Public Trust Act, 1950 vide registration No. E-6/LATUR dated 17-10-1985. The CIT(Exemption) rejected the application seekin....

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....tion) to grant registration u/s. 12AA of the Act. He submits that this Tribunal held that at the time of granting registration the CIT(Exemption) is only required to examine whether the objects of the trust are charitable in nature or not and the activities of the trust are genuine. Since, the issue is similar and the direction in the said case may be followed in the present case also and prayed to allow grounds of appeal. 5. The ld. DR, Shri Deepak Garg submits that the CIT(Exemption) rejected granting of registration u/s. 12AA of the Act on two aspects, one is, activities of the trust are not genuine wherein the assessee could not pay taxes on surplus funds and placed reliance on Para No. 5 of the impugned order. Further, he submits th....

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....st are genuine, but however, in the present case as discussed above the CIT(Exemption) did not point out anything against the objects and genuineness of the activities of the trust but however rejected the registration on examination of financial statements of the assessee for the last four years by holding the assessee has made surplus and no taxes paid thereon on such surplus funds. We find that it is a settled principle that the grant of registration and the issue of assessment or exemption u/s. 11 of the Act are separate and distinct. The process of registration is not on occasion for deciding the issue of exemption of donation u/s. 11 of the Act. The issue of exemption cannot be examined during the process of registration. Therefore, i....