TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 995
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....stified in rejecting the grant of registration to the assessee society as he was only expected to examine whether the objects of the assessee society were charitable in nature and whether the actual activities of the assessee society in pursuance of the stated objects were genuine or not. It was submitted that the Ld. CIT(E) has not disputed the objects of the assessee society being charitable in nature and has further issued a detailed questionnaire to verify the activities carried on by the assessee society which have been duly responded by the assessee society and no adverse finding has been recorded by the Ld. CIT(E). 3. It was further submitted that the only reason why the Ld. CIT(E) has rejected the assessee's application seeking....
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....at a presumption cannot be drawn in this regard and a specific finding is required to be recorded in this regard and in absence of such a finding, the matter may be remanded to the file of the Ld. CIT(E). 5. Regarding Corpus donation, the Ld. CIT/DR relied on the findings of the Ld. CIT(E) and our reference was drawn to his findings which are contained at para 6 and 7 of the impugned order which read as under:- "6. After considering the submissions on record, it is observed that the applicant has shown an amount of Rs. 85,74,000/- as Corpus Fund in its Balance Sheet for F.Y. 2016-17. Further, an addition of Rs. 23,93,000/- has been made to corpus fund during the F.Y. 2017-18 and an addition of Rs. 21,52,000/- has been made during F.Y. 20....
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....rust/society becomes liable to pay tax for all these years. Further, the ITR for A.Y. 2017-18, 2018-19 & 2019-20 corresponding to F.Y. 2016-17, 2017-18 & 2018-19 has been filed by the applicant showing 'nil' income during the year and 'nil' tax has been paid. However, the applicant should have added the amount shown against corpus fund during the year into its income and then it should have filed the correct ITR and paid taxes. Unless the legitimate tax against the income as discussed above is paid, the application for registration u/s. 12AA of the Act cannot be considered. The trust has illegally taken the benefit of provisions of the Income Tax Act for getting tax exemption benefits and has tried to subvert the Income Tax ....
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....AA where the conditions for grant of such registration otherwise stand duly fulfilled. 7. Now, coming to the other contention of the Ld. AR that no adverse finding has been recorded by the Ld. CIT(E) regarding the objects of the assessee society being charitable in nature whereas the Ld. CIT D/R has contended that a presumption cannot be drawn in this regard and a specific finding is required to be recorded in this regard. On perusal of the provisions of section 12AA, we find that it talks about the Ld. CIT(E) satisfying himself about the objects of the assessee society and genuineness of its activities and thereafter, where he is satisfied, he shall pass an order in writing registrating the society and where he is not satisfied, he is aga....