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2014 (4) TMI 821 - AT - Income TaxRefusal to grant registration u/s 12AA of the Act – Conditions necessary for registration u/s 12A(a) not fulfilled - Held that:- The main objects of the company to be pursued on incorporation are contained in clause A(1) of the Memorandum of Association, wherein it is clearly mentioned that "no objects of the company shall be carried out on commercial basis" - the winding up / dissolution clause is in conformity with the conditions laid down under the Act – the CIT, Jamnagar clearly erred in refusing to grant the registration sought by the assessee u/s 12AA of the Income-tax Act, 1961 – thus, the CIT is directed to read the clause X of Memorandum of Association and clause 52 of Articles of Association, wherein it is clearly stated that "if upon winding up or dissolution of the company there remains, after satisfaction of all the debts and liabilities any property whatsoever the same shall not be distributed amongst the members of the company but shall be given or transfer to such other company having object similar to the objects of this company" - The assessee is an Educational and Charitable Trust and issuance of registration u/s 12AA is a primary condition for the start of the charitable activity of the trust, therefore its case has to be decided on priority basis - Decided in favour of Assessee.
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