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2023 (2) TMI 59 - AT - Income TaxExemption u/s 11 - denying the Registration u/s 12AA of the Act and also rejected the exemption u/s 80G - RGG - Charitable activity u/s 2(15) - HELD THAT:- A plain reading of the object of the Company reveals that the assessee is having the object to carry out the activities of ‘education’ and there is a specific bar/Clause that ‘none of the object of the Company will be carried out on commercial basis’. As also found that the assessee Company is engaging in imparting education in the field of mountaineering, rafting high attitude trekking, wilderness medicines and wilderness first aid. The assessee has produced the materials to show that the assessee company since from its existence from the year 2010 trained so many students including para military forces, BSF Officers. While disposing the application u/s 12AA of the Act the Commissioner is required to see whether the objects of the assessee are charitable in nature or not and also should verify whether the activities are genuine or not. The genuineness of the activities would mean to see that activities are not camouflage, bogus, artificial and should verify whether the activities are in accordance with the object of the institution. Commissioner (exemption) cannot extend the scope of the enquiry beyond that point. CIT(E) has committed an error in not granting registration in the u/s 12AA read with Section 80G of the Act. Therefore, we allow the Grounds of Appeal and further direct the CIT(E) to grant registration to the assessee u/s 12AA of the Act and also grant approval of registration u/s 80G of the Act afresh and grant approval subject to fulfillment of conditions mentioned in the said provision. Appeal of assessee allowed.
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