PER BHAVNESH SAINI,JM Both the appeals by assessee are directed against the orders of ld. CIT(Exemptions) Chandigarh dated 29.05.2015 rejecting the applications under section 12AA and 80G(5) of the Income Tax Act.

2. Briefly the facts of the case are that the assessee filed application under section 12A of the Act on

26.11.2014 before CIT (Exemptions) Chandigarh. The CIT after giving opportunity of being heard to the assessee, noted that assessee trust was registered on 06.03.2013 and reproduced the Income & Expenditure and Balance Sheet in the impugned order and noted that assessee has made an expenditure of Rs. 2,79,053/- against its income of Rs. 1,51,250/-. Since there were no corpus funds available in 2 the previous years balance sheet being it a new trust, assessee was asked to explain from where excess expenditure was met. The assessee stated that excess of the expenses have been made by its members but the same have not been routed through the books of account. The CIT (Exemptions) therefore, noted that assessee has not maintained its books of account as per accounting procedure and therefore, he was not satisfied with the genuineness of the trust and accordingly, rejected the application under section 12AA of the Act. Since registration application was rejected, therefore, application under section 80G(5)(vi) of the Act was also rejected.

3. We have heard ld. Representatives of both the parties and perused the material available on record. The ld. counsel for the assessee submitted that assessee earlier filed application for registration under section 12AA of the Act and approval under section 80G(5)(vi) of the Act. The same were rejected. No activity was carried out by the assessee. He has submitted that assessee preferred appeal before ITAT Chandigarh who has vide order dated

28.04.2014 in ITA 997/2013 and 1040/2013 restored the matter to the file of CIT to pass the order afresh and allowed the appeals of the assessee for statistical purposes. He has, however, submitted that since the Tribunal has given a direction to furnish documents of the activities carried out by the assessee till 31.3.2013, therefore, this matter was not pressed because the assessee was registered only on 06.03.2013 and as such, 3 assessee filed the present fresh application for registration.

4. The ld. counsel for the assessee submitted that findings of the CIT (Exemptions) are wholly incorrect and referred to PB-27 and 28 which is Income & Expenditure Statement and Balance Sheet of the assessee trust from

01.04.2013 to 31.03.2014 and the same Income & Expenditure Statement is also reproduced in the impugned order and submitted that the assessee met the deficit of corpus amount which is introduced by the trustees, which is also evident from the balance sheet of the assessee trust. He has also referred to PB-26 which is main objects of the trust which appears to be charitable in nature.

5. Considering the above facts and rival submissions of both the parties, we are of the view the matter requires re- consideration at the level of the CIT (Exemptions) Chandigarh. Balance Sheet of the assessee supports the contention of ld. counsel for the assessee that assessee trust met the deficit from the corpus which is mentioned in the balance sheet, but the CIT (Exemptions) recorded in the impugned order that such amount have not been routed through the books of account which is factually incorrect. The main objects of the trust as reproduced at page 26 of the Paper Book also prima-facie show that same were charitable in nature. The same have not been considered and discussed by the CIT (Exemptions) in the impugned order, therefore, matter requires re-consideration at his 4 level. We, accordingly, set aside the orders of authorities below and restore both the matters to the file of CIT (Exemptions) Chandigarh with direction to re-decide both the matters afresh in accordance with law by giving reasonable sufficient opportunity of being heard. The CIT (Exemptions) shall take into consideration the requirements of Section 12AA of the Act while considering the application for registration and shall satisfy himself about the objects of the trust and the genuineness of its activities.

6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the Open Court. Sd/- Sd/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dat ed 9 t h Oct., 2015. Poonam Copy t o: The Appellant, The Respondent, The CI T(A), The CI T, DR Assist ant Registr ar, I TAT/CHD