Sec. 12AA & 80G of Income Tax Act, 1961— Registration — Matter restored to the file of CIT(E) for examining the genuineness of the activities for disallowance of application of registration under section 12AA.

Facts: Assessee carried research and provided technical assistance/consultancy to various government department engaged in the field of health and malnutrition -related problems. The registration under section 12AA was rejected byCIT(E) vide impugned order on the ground that no evidence of actual activities were submitted by the assessee and, therefore, genuineness of the activities of the assessee could not be established. The learned CIT(E) also mentioned that there was no change in the circumstances after the rejection of the ground of registration vide order dated 21/12/2018 with reference to earlier application for registration. Consequently, the approval sought under section 80G was also rejected.

Held, that CIT(E ) has not disputed the charitable nature of the activity of the assessee but the registration has been rejected mainly due to non-genuineness of the activity of the assessee concluded on the basis of non-submission of evidence by the assessee. It is imperative to examine the genuineness of the activities of the assessee duly supported with the evidences. The genuineness of the activities would mean that the activities are not bogus or artificial or camouflaged by some means and whether the activities are in accordance with the object of the institution. In view of the facts and circumstances of the case, it is appropriate to restore the matter of registration under section 12AA back to CIT(E) for examining the genuineness of the activities with the direction to the assessee to submit the necessary details of the activities carried out supported by the evidences. The appeal of the assessee against rejection of registration is accordingly allowed for statistical purposes. - EVIDENCE INDIA ACTION FOUNDATION V/s CIT - [2020] 26 ITCD Online 095 (ITAT-DELHI)