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2011 (5) TMI 591 - AT - Income TaxRegistration u/s 12A cancelled - Held that:- Arriving on of a business to be incidental to the charitable activities of a trust, it is necessary that the trust should also carry on the charitable activities stated as its objects. Carrying on of the business should only be in the course of carrying on of its charitable activities. Therefore, carrying on of the main objects of the charitable activities is an indispensable requirement for claiming the statutory recognition as a charitable institution. Carrying on of the business alone, without carrying on the proclaimed charitable objectives does not make the business incidental to the carrying on of the principal charitable activities. The assessee has proclaimed five objectives as principal charitable objectives and two objects [objects (e) and (g)] to carry on business incidental to the attainment of other five main objectives of the trust. But in the present case, the assessee has converted the incidental objects as the main object of the assessee being that of carrying on of full-fledged business and chose not to carry on the proclaimed main objects of the charitable activities. In these circumstances, the business carried on by the assessee trust cannot be considered as business incidental to the attainment of main objects of charity. As the assessee has not satisfied the first condition of section 11(4A) cancelling the registration u/s 12A is warranted - Decided against the assessee
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