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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: SHRI WASEEM AHMED
O R D E R PER BENCH: The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax, Exemptions, Ahmedabad [Ld. CIT in short] dated 15/02/2018 arising in the matter of the order passed under s. 12AA of the Income Tax Act, 1961 (hereinafter referred to as "the Act").
The only issue raised by the assessee is that the learned CIT exemption erred in not granting registration certificate under section 12AA of the Act.
At the outset we note that, the learned CIT exemption has rejected the registration application made by the assessee under section 12AA of the Act for two reasons as detailed under:
- 2 - i. The assessee has not filed the income and expenditure account, receipt and payment account and the balance sheet for the financial year 2016- 17. Therefore he (learned CIT exemption) was not able to carry out the verification of the activities carried out by the assessee. ii. The assessee failed to file the certified copy of the trust deed either at the time of application made in form 10A or the submission made during the proceedings.
From the preceding discussion we note that the learned CIT exemption at the time of granting the registration under section 12AA of the Act has to ensure whether the objects are in consonance of the provisions of law. As such, he is not supposed to verify the activities to establish the genuineness of the assessee during the registration proceedings under section 12AA of the Act. The activities carried out by the assessee are subject to the assessment proceedings. Therefore, in our considered view the learned CIT exemption was not required to refer the financial statements for the year i.e. 2016-17 as discussed above.
4.1 However, regarding the furnishing of the trust deed, we note that the assessee was under the obligation to furnish the certified true copy of the trust deed before the learned CIT exemption. However the learned has recorded the finding that the assessee has not furnished the certified copy of the trust whereas on perusal of the paper book we find that the assessee has furnished the copy of the trust deed. Thus we find that there is a dispute on the fact whether the trust deed was furnished by the assessee or not. Anyway even it is resumed that the trust deed was furnished by the assessee but the fact will not change that the learned CIT exemption has not verified the same. Therefore, in the interest of justice and fair play we are inclined to restore the issue to the file of the learned CIT exemption for fresh adjudication. The assessee is also directed to cooperate
- 3 - during the proceedings before the learned CIT exemption. Hence the ground of appeal of the assessee is allowed for the statistical purposes.
In the result, the appeal of the assessee is allowed for the statistical purposes.