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2014 (1) TMI 933 - AT - Income TaxRejection of Application u/s 12A of the Act – Rejection of Apporval u/s 80G of the Act – Held that:- At the time of granting registration under section 12A of the Act, commencement of activity is not a relevant consideration if the trust is a new one - the assessee trust was created by trust deed dated 11th September, 2007 and it applied for registration on 26.2.2008 - it cannot be expected that the trust could have commenced activity within such a short time - at the time of grant of registration the registering authority has only to consider whether the objects of the trust are charitable or not. Relying upon CIT-1 vs. Kutchi Dasa Oswal Moto Pariwar Ambama Trust [2012 (12) TMI 876 - GUJARAT HIGH COURT] - the conclusion of the DIT(E) to the effect that since the assessee has not commenced its activities, registration under section 12A will not be granted is not the correct view - So far as the conclusion of the DIT(E) that the assessee is having mixed objects hence, registration cannot be granted - such conclusion is also not correct as there is no such restriction under the relevant provisions of the Act which could suggest that a trust having religious activity is not eligible for exemption - The DIT(E) was not justified in rejecting the application for grant of registration under section 12A of the Act and as well as the application seeking approval under section 80G of the Act – the Order passed by the DIT(E) set aside and the matter remitted back for considering the entire issue of grant of registration under section 12A of the Act afresh – Decided in favour of Assessee.
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