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Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE
Before: SHRI A.K GARODIA & SMT. BEENA PILLAI
ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against order dated 29/06/2018 passed by Ld. CIT (E), Bangalore.
Ld. A.R. at the outset submitted that, on one hand Ld. CIT (E) notes that reply has been submitted by trust on 12/03/2018 which was examined, on the other hand Ld. CIT(E) rejects application under section 12 AA dated 19/12/2017 filed by assessee for lack of diligence and follow up.
He submitted that at the stage of granting registration under section 12 A, genuineness of objects only needs to be Page 2 of ` tested. Ld.AR submitted that in the present case, Ld. CIT(E) rejected the application for the reason that, the association does not qualify to be recognised as charitable trust as defined under section 2 (15) of the Act. He submitted that, objects of the society showed several activities were carried out which were in the interest of general public. He submitted that objects of the assessee has not been analysed by Ld. CIT (E).
Ld.CIT DR did not object for issue to be sent back to Ld.CIT(E) for reverification.
We have perused submissions advanced by both sides in light of records placed before us.
We note that Ld.CIT(E) on one hand considers the submissions of assessee for rejecting application dated 29/06/2018 and on other hand, also states that assessee did not participate and follow up with proceedings diligently.
We note that Ld. CIT(E) did not indicate what future details were required to be filed by assessee in support of its application. The preponderance of judicial opinion of all Hon’ble High Courts including this Tribunal is that, at the time of registration under section 12AA of the Income-tax Act, what is necessary for claiming exemption under sections 11 and 12 of the Act, Ld.CIT(E) is also not required to look into the activities, where such activities have not or are in the process of its initiation. What is necessary to be looked into is the genuineness of such objects.
We therefore, set aside this issue back to the file of Ld.CIT(E) for considering application dated 29/06/2018 afresh and to decide the application in accordance with law. Needless to Page 3 of ` say that proper opportunity of being heard may be granted to assessee and assessee is directed to file all relevant details in support of its application. Accordingly grounds raised
by assessee stands allowed for statistical purposes. In the result, appeal filed by assessee stands allowed for statistical purposes. Order pronounced in the open Court on 15th June 2020. Sd/- Sd/- (A.K GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15/06/2020 /Vms/ Copy to: