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3 orders · Page 1 of 1
The Tribunal held that the assessee had discharged the burden under Section 68 by providing evidence such as PAN cards, Income Tax Returns of lenders, and proof of repayment of loans with interest. The payment of interest and repayment of the loan indicated the commerciality and bona fides of the transactions.
The Tribunal held that the genuineness of the objects of the trust should be examined at the time of granting registration under section 12AA, not the application of income. The Tribunal found that the Commissioner's rejection based on the genuineness of transactions was premature.
The Tribunal held that the CIT(Appeals) failed to decide the issue on merit. Therefore, the matter was restored to the CIT(Appeals) for fresh adjudication.