The Commissioner (E) rejected the assessee’s application for registration under section 12AB on the ground that its Articles of Association contained a clause permitting buy-back of its own shares, which was considered inconsistent with charitable objects. The Tribunal noted that the assessee had already initiated steps to amend the Articles of Association. The matter was therefore restored to the Commissioner (Exemption) for fresh consideration after granting adequate opportunity of hearing. The Tribunal held that while considering an application for registration under section 12AB, the Commissioner (E) is required to examine the genuineness of the activities and compliance with the statutory conditions. The Commissioner exceeded the permissible scope of enquiry by examining whether the assessee had wrongly availed exemption under sections 11 and 12 in earlier years. Such consideration was irrelevant for deciding the application for registration. The Commissioner (Exemption) rejected the application for registration on the ground that payments had been made to trustees specified under section 13(3), but the assessee had failed to furnish the necessary explanations and supporting documents. The Tribunal held that, in the interest of justice, the assessee should be granted one further opportunity to explain the nature of the payments and produce all relevant evidence. The matter was accordingly restored to the Commissioner (Exemption) for fresh adjudication<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 12AB : Procedure for fresh registration-Clause permitting buy-back of shares in Articles of Association-Matter remanded-Commissioner exceeded scope of enquiry by examining past claim of exemption under sections 11 and 12-Payments to specified persons-One more opportunity to explain-Matter remanded.[S. 11, 12, 13]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63941","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gDj","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63941"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63941\/revisions"}],"predecessor-version":[{"id":63942,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63941\/revisions\/63942"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}