TaxTMI 
TaxTMI 
2021 (8) TMI 709
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....(Exemptions) Chandigarh. 3. The appellant assessee reserved to right to add, alter, modify, amend the grounds of appeal." 2. The appellant society has been in operation since 28.05.2016 and filed an application in this office of CIT(E) on 01.02.2017 for seeking registration u/s 12AA of the Income Tax Act, 1961. 3. This is 2nd round of appeal before us. In the 1st round of appeal Income Tax Appellate Tribunal, Amritsar Bench, Amritsar has allowed the appeal of the applicant Society for statistical purposes in ITA No. 682&683(Asr)/2017 dated 08.02.2018. 4. The stated ostensible aims and objects of the trust is to impart education to the public at large without discrimination of caste, creed etc. Again, the Ld. CIT(E) rejected the instant application for registration u/s 12AA(1)(b)(ii) of the Act by observing that on the fixed date neither did any one attend nor was any request for adjournment received, in order to follow the principles of natural justice another opportunity was accorded to the applicant on 01.07.2020 and the matter was fixed for 06.07.2020, Again, on the fixed date neither did any one attend nor was any request for adjournment received. In order to ....
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....f Registration. The Request was again rejected vide order which is under appeal before the honorable Bench. The Order was passed by the Ld. CIT Exemption on 20, July 2020 when almost whole the country was functioning and arbitrarily passed the order thereby denying the registration stating the reason of non attendance when almost physical appearance was not allowed in the Income Tax Department due to COVID-19. The appellant had submitted deed of trust and note on activities of the trust besides Balance Sheet or Income and Expenditure account. The Ld. Commissioner wanted to go into investigate into genuineness of activities of the of the trust when it is stated that the stage at which the Ld. Commissioner of Income Tax desired deep investigation into the matter is quite pre mature. I may invite kind attention of Honorable Bench towards page No 42 of the Paper book where the appellant has submitted all the information required and page No 10 &11 wherein all the requisite questions are properly replied. However section 12A of the Income Tax Act 1961 clearly that the appellant can make application U\S 12AA of the Income Tax Act 1961 within one year f....
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....nder this Act without giving effect to [the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year], the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the pres-cribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.] (c) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made. The procedure for registration of the trust or institution as provided U\S 12AA of the Income Tax Act 1961, reads as follows:- (1) On receipt of an application for registration of a trust or institution; the Commissioner shall - (a) call for such documents or information from the trust....
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....t. At the stage of grant of certificate under section 12A of the Act, the only enquiry which could possibly be made would be whether the society has actually made an application in time and whether the accounts of the society are maintained in the manner as suggested by the said section. Beyond that, the scope of enquiry would not go. In insisting upon the society changing or amending its bye-laws and in refusing to consider the application on the ground that those bye-laws have not been changed so as to exclude the religious aspect from those bye-laws, the Commissioner would be overstepping his limits. In general at the stage of application for registration under Section 12AA the Ld. Commissioner of Income Tax Exemption need not to go in deep and only to see from the annexed documents the following:- 1. Activities of the Trust are genuine. 2. That the Trust activities are carried in accordance with the objects of the trust/Institution. "Procedure of registration is a first step and a preliminary stage where the Commissioner shall restrict the enquires as to whether the trust is actually and whole heartedly performing all the duties and activitie....
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....are open to all irrespective of caste, creed, colour, sex and religion. The trust will not carry any activities with an intention of earning profits. Therefore at this stage the Ld. CIT ought to have gone through the trust deed and register the trust In the light of my Humble submissions and grounds of appeal raised it prayed that registration U/S 12AA of the income Tax Act 1961 may be granted to the appellant so that the appellant can claim exemption U\S 11 of the Income Tax Act 1961 on income that the appellant may derive. 6. The Ld. CIT(DR) on the other side placed reliance on the impugned order. 7. We have heard rival contentions, perused the material relevant on record and citations relied in support. It is admitted fact that the main Object of the applicant trust are to impart education among the society without any caste, creed and Colour. We find that the trust deed submitted before the Ld. CIT was quite explanatory of the fact that the trust was created for imparting education. 8. It is also admitted fact on record that in the 2nd round of proceedings, the CIT(E), Chandigarh has rejected the application filed for registration u/s 12AA(1)(b)(ii) o....
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.... AR has filed the requisite detailed called for by the CIT(A) vide APB, Pg. 10,11 and 42). 12. In the case of "Fifth Generation Education Society v. CIT",(Supra) held that the question of application of income need not be considered - While considering the assessee's application for grant of registration under section 12A, all that the Commissioner may examine is whether the application is made in accordance with the requirements of that section read with rule 17A, and whether Form 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At that stage, it is not proper to examine the application of income. 13. In case of "UP Forest Corporation Vs CIT", the Honorable supreme Court has held that unless and until institution is registered U/S 12AA, of the Income Tax Act 1961 it cannot claim exemption U/S 11 or 12 Of the Income Tax Act 1961. Therefore, registration U/S 12AA is not blanket exemption that the Ld. Commissioner of Income Tax Should consider at this stage but it is a pre requisite and a formality to be complied with and the Ld. CIT is depriving off the appellant from claiming any legal exemption with otherwise law pro....