2022 (1) TMI 990

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....on the file in as much as he was not justified to reject the application for grant of registration u/s. 12AA filed by the appellant on the ground that the appellant did not file any appeal against the earlier rejection by the Learned Commissioner of Income Tax (Exemptions) vide order dated 27.03.2017. 2. That the Learned CIT(Exemptions) was not justified to reject the application for grant of registration on the ground that the discrepancies which had been specifically pointed out at the time of earlier rejection, had not been removed whereas fact of the matter is that at that time the appellant had not started any activity corroborated with the stated aims and objects whereas now the appellant was in the process of setting up a ho....

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....6, the CIT(E) proceeded to dismiss the application arbitrarily. It was submitted that instead of considering this activity, the ld. CIT(E) dismissed the claim on the basis of generalistic observations concluding that major issues raised in the previous rejection order u/s. 12AA had not been addressed. The general observation was again repeated in para 7 by ld. CIT(E) holding that fresh application "without removing the discrepancies which had been specifically pointed out, it was submitted, is contrary to the facts. Attention was invited to Paper Book page 37. Referring to the said copy of the balance sheet as on March 31, 2020, it was submitted, that in the 'Assets' column under the 'Fixed Assets' the assessee has shown cap....

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....behalf of the Revenue that the assessee should necessarily have appealed against the order and not come up by a fresh application subsequently after addressing the shortcomings pointed out is an incorrect appreciation of law. If on facts a taxpayer concurs with the finding of the CIT(E) that he has no case on the facts as they stand, then appealing against the order is an exercise in futility. The assessee in all fairness if it expects the grant of Registration on a subsequent date is necessarily required to ensure that the necessary criteria is fully met in law and spirit. Infact the adjudicating authority expecting that their orders are respected and complied with per force expect self corrective actions as maintainable in law. Applicatio....