Registration u/s 12AA cannot be denied for mere non filing of ITR

The learned counsel for the assessee submitted before us that the Commissioner of Income Tax (Exemptions) in his order has given two reasons for declining the registration under section 12A of the Act. The first is that the assessee trust has not filed any return of income for the earlier years. Therefore, the accounts of the trust are not reliable and, therefore, not genuine. Another reason given by the Commissioner of Income Tax (Exemptions) is that as per clause-12 of the Memorandum of the trust, absolute powers were given to the trustees to manage the property of the trust which may attrac...