TaxTMI 
TaxTMI 
2021 (12) TMI 818
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.... Trust u/s. 12AA of the Income Tax Act, 1961. 2. That the finding of the CIT (Exemptions) in denying the registration to the Trust that the corpus donation received during financial year 2015-16 and 2016-17 should have been the income of the appellant for those years since at that time, the Trust has not been registered u/s. 12AA, is not relevant for the purposes of granting registration u/s. 12AA, as discussed in para 7.1 of the order by the CIT (Exemptions). 3. That the finding of the CIT(Exemptions) as mentioned in para 7.2 of the order that the funds of the charitable Trust have not been deployed to the charitable purpose and rather the funds have been used for personal cause, is devoid of any valid reasoning. ....
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....vely to the balance sheet which, rather, should have been taken as income in the income and expenditure account for F.Y. 2015-16 and F.Y. 2016-17 respectively. 4. We have heard both the parties and in our considered opinion, on the above said reasons, Ld. CIT(E) ought not to have rejected an application for grant of registration u/s. 12AA of the Act. In our considered opinion, Ld. CIT(E) ought to have seen and examine the aim and object of the trust whether same are consonance to the spirit of law or not. Ld. CIT(E) should have seen the genuineness of activities of the trust. In this present case, Ld. CIT(E) has not exercised the same before rejecting the registration. Ld. CIT(E) has neither pointed out any defect in aim and object of th....
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....o examine the application of income." 6.2 That further, the Department in this case before us has not disputed the objects of the trust or genuineness of activities conducted by the assessee trust. In this scenario, it was observed by the Pune Bench of the Tribunal in the case of Kai Shri Mahadebrao Naykude Dnyanvikas Prabhodhini Trust Vs. Commissioner of Income Tax (Exemption) (2020) 208 TTJ (Pune) 296 that when the objects of the trust were not disputed by the Department, nor they have disputed genuineness of activities of the assessee trust, then non filing of return u/s. 139(4A) of the Act cannot be the ground to deny registration U/S. 12AA of the Act to the assessee. It is only at the assessment proceedings, the Assessing Offi....
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....he only issue to be examined by the Ld. CIT(Exemption) is regarding the true nature of the objects of the trust i.e. whether charitable or not. 9. In the present case, the objects of the trust are not doubted by the Department and they have also not disputed the charitable nature of the activities conducted by the assessee trust. Meaning thereby, all the relevant records were submitted before the Ld. CIT(Exemption) and he had verified the same and was satisfied on this aspect fulfilling the requirement of Section 12AA of the Act. Considering the aforesaid judicial pronouncements, facts and circumstances in this case, we are of the considered view that this is not a fit case for rejection of application for registration U/S....