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2022 (3) TMI 920 - ITAT CHENNAIExemption u/s 11 - rejecting application made u/s 12AA - Charitable activities u/s 2(15) - CIT(E) rejected the application on a ground that the genuineness of the charitable trust is under question - HELD THAT:- CIT(E) has not pointed out on what material it came to a conclusion that genuineness of the charitable trust is in question. Section 12AA of the Act mostly focused on the two issues (i) the genuinity of the trust (ii) the activity of the trust is similar with the main object of the trust as discussed above. Assessee in its paper book has annexed the approval of Tamil Nadu School Education under Govt of Tamil Nadu which was granted by the Additional Directorate (Higher Secondary Tamil Nadu School Education). The Nursery, Primary and Higher Secondary schools are running under the Trust. Mere, application was made after survey or earlier the fees were collected by the secretary of the trust should not be the reason for rejecting application made U/s 12AA - CIT(E) correctly pointed out that the assessee had the lack of genuinity. But it was before the application of registration. But after the application made u/s 12AA of the Act, no such irregularities were found out by the revenue authority. Different financial statements are filed with the paper book and the trust invested in fixed assets for running the institutions. The Income Tax assessments of the assessee were made by the revenue in different years. The copies of the orders are annexed in Paper Book-5 of assessee in page no 1-236. It is very clear from the assessment orders that the existence, activity & genuinity are not in question. Application filed by the assessee Trust for grant of registration under Sec. 12AA of the IT Act is restored to the file of the CIT(E) for fresh adjudication - Appeal of the assessee is allowed under statistical purpose.
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