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2013 (6) TMI 477 - ITAT DELHIRegistration u/s 12A denied - CIT rejected the registration as no charitable activities were carried on by the trust and further there were cash credits in each depositors' bank account from whom trust had obtained interest free loans - Held that:- The objects of the trust are imparting of education which is included under the definition of charitable object u/s 2(15) and CIT has not made any adverse findings to that effect. The trust has also been issued letter of intent for establishment of new technical institution vide letter dated 30.3.2009 issued by Al India council for Education. The trust is also in the process of constructing buildings on acquired land which is apparent from balance sheet dated 31.3.2009 which shows the value of work in progress at Rs.210.33 lakhs. Sub clause (a) & (b) of section 12AA makes it clear that the CIT has to satisfy himself about the genuineness of the activities of the trust and also about the objects of the trust. The scope of power of CIT is thus limited in this regard to make enquiries as he may deem fit & not required to look either into the nature of income of the assessee or its application if the object of the trust or institution falls within the definition of charitable purpose u/s 2(15). Also the assessee has submitted names and address of the persons along with their PAN numbers & addresses from whom unsecured loans were obtained and their statements on oath were also recorded by Addl. CIT. Therefore, for the reason that there was cash credit in the account of depositors before advancing loan to the assessee, registration u/s 12AA cannot be denied. In favour of assessee.
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