- (1.) This appeal is directed against order dated 12.6.09 of Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, Jodhpur, whereby an appeal preferred by the assessee-Gopi Ram Goyal Charitable Trust against the order dated 17.4.08 passed by the Commissioner of Income Tax (CIT), Bikaner, rejecting the application preferred by the assessee under Section 12A of the Income Tax Act, 1961 (for short "the Act"), has been allowed.
(2.) Learned counsel for the appellant submitted that after due consideration of the material on record, the CIT, Bikaner had arrived at a categorical finding that the objects of the assessee trust and its activities are not genuine and thus, the application preferred by the assessee seeking registration under Section 12A was rightly rejected. Learned counsel would submit that for the year ending on 3.3.03, the assessee had shown addition of Rs.11,18,251/- during the year out of which Rs.11,00,000/- have been shown as FDR with the bank but it was not clear that whether fund was deposited as per requirement of Section 11(5) of the Act. Learned counsel submitted that issue of corpus fund donation was not proved by the assessee by producing any evidence on record hence, the assessee could not have claimed that it has applied its income to the extent of 85%. Learned counsel would submit that the assessee having failed to reply the specific queries made by the CIT, the conclusion drawn that there is absence of charitable activities cannot be faulted with. Learned counsel would submit that ignoring the findings arrived at by the CIT, the ITAT while setting aside the order passed by the CIT, has seriously erred in directing to issue registration to the assessee under Section 12A.
(3.) On the other hand, the counsel appearing for the respondent assessee submitted that as per the mandate of the provisions of sub-section (2) of Section 12AA, the CIT was under an obligation to pass an order granting or refusing registration before the expiry of six months from the ends of the month in which the application was received under clause (a) of subsection (1) of Section 12A of the Act and thus, the CIT having failed to dispose of the application within the stipulated period, the ITAT was justified in holding that failure to do so will amount to deem that the registration is granted. Learned counsel submitted that a bare perusal of the order passed by the CIT reveals that the finding arrived at regarding the objects mentioned in the trust deed being non genuine was absolutely perverse. Learned counsel submitted that while considering the application under Section 12A, the CIT entered into enquiry as if he was examining the entitlement of the assessee for exemption under Section 11 of the Act. Learned counsel submitted that the order impugned passed by the ITAT does not give rise to any substantial question of law and thus, the appeal deserves to be dismissed.;