THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH Vs. M/S SHRI SHIRDI SAI DARBAR CHARITABLE TRUST (DHARAMSHALA), BARNALA

JUDGEMENT

(1.) The appellant-revenue impugns the order dated 08.06.2016, Annexure A.2, passed by the Income Tax Appellate Tribunal Divisional Bench, Chandigarh (in short "the Tribunal") through the present appeal filed under Section 260-A of the Income Tact Act, 1961 (in short "the Act") in ITA No.692/CHD/2015, claiming following substantial questions of law:-

(2.) Briefly, the facts as narrated in the appeal, necessary for adjudication of the controversy involved, may be noticed. The respondent assessee, a trust, filed an application for registration under Section 12AA of the Act on 09.12014. Vide order dated 26.06.2015, Annexure A.1, the Commissioner of Income Tax (Exemptions) [CIT(E)] denied registration to the assessee on the ground that it had not filed any return of income for the assessment years 2012-13 to 2014-15. The assessee's receipt for these years was Rs. 5,52,369/-, Rs. 15,15,442/- and Rs. 10,47,415/- respectively. It was further recorded that the accounts were not got audited by the assessee. Thus, the CIT (E) held that the accounts of the assessee were not reliable/genuine. Clause 12 of the objects of the assessee trust conferred absolute powers on the trustees to manage the property of the trust which in turn was liable to attract the provisions of Section 13 (1)(c) of the Act. Aggrieved by the order, the assessee filed an appeal before the Tribunal. Vide order dated 08.06.2016, Annexure A.2, the Tribunal allowed the appeal filed by the assessee and directed the CIT (E) to grant it registration. It was held that non-filing of the return was not a valid ground to deny registration as the CIT (E) had only to satisfy himself about the charitable nature of the objects and genuineness of the activities of the trust. It was further recorded that provisions of Section 13 of the Act were to be looked into by the Assessing officer at the time of assessment proceedings and not at the time of granting registration under Section 12AA of the Act. Further, no adverse remarks had been made by the CIT (E) with regard to the objects contained in the memorandum of the trust. Hence, the instant appeal by the appellant-revenue.

(3.) We have heard learned counsel for the appellant-revenue.