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The Tax PublishersITA No. 183/CTK/2019
2020 TaxPub(DT) 5012 (Ctk-Trib)INCOME TAX ACT, 1961
Section 12AA
Where CIT had not recorded any adverse comments or dissatisfaction about objects of assessee-trust or genuineness of the trust activities and he only observed some lacuna in the amendment and dissolution clauses of MOA, thus, the CIT clearly went beyond the scope of enquiry contemplated under section 12AA and refused to grant the registration under section 12AA to the assessee on a totally irrelevant ground and accordingly the matter was remanded to the CIT for fresh consideration.
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Charitable trust - Registration under section 12AA - Denial of registration - CIT did not record any adverse comment or dissatisfaction about objects of trust
CIT disallowed assessee's claim of registration under section 12AA on the following grounds; that amendment and dissolution clauses of MOA were not proper; that in the winding clause, the assessee had no intention to transfer the trust properties to some other institution having 12A registration and 80G approval and that there was no clause in the MOA, which required auditing of accounts of the society by a CA. Further, the CIT noted that total receipts of the assessee were more than Rs. 1 crore and therefore, he took the view that the assessee was not eligible for exemption under section 10(23C)(iiiad). Further, the CIT also asked the assessee to furnish fee receipts books and the receipts for the donation. Assessee produced certain documents but could not produce some bills and vouchers; hence, the CIT doubted the genuineness of the activities of the trust. Held: A perusal of the order of the CIT showed that he had not recorded any adverse comment or dissatisfaction about objects of trust or genuineness of the trust activities. Only he observed some lacuna in the amendment and dissolution clauses. Thus, the CIT clearly went beyond the scope of enquiry contemplated under section 12AA and refused to grant the registration under section 12AA to the assessee on a totally irrelevant ground. Further, some bills and vouchers could not be produced by assessee due to time constrained by the CIT for appearing before him from a distance of more than 250 kms. and also other unavoidable reasons. Thus, it could be said that there was genuine cause for not furnishing the bills and vouchers. Therefore, the matter was remanded to the CIT and the assessee was directed to produce the bills and vouchers and books of account before the CIT for verification in respect of the claim and after getting the same, the CIT was also directed to examine and verify the genuineness of the activities of the trust and decide the issue afresh.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2018-19
IN THE ITAT, CUTTACK BENCH
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