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2007 (4) TMI 661 - AT - Income TaxDenial for Grant of registration u/s 12AA - satisfaction of the CIT regarding the objects of the trust and the genuineness of its activities - income earned by the trust is being invested in the trust only - HELD THAT:- The erstwhile firm, having two partners, which are the trustees of the present assessee trust, was dissolved vide a dissolution deed. The learned CIT has objected that this dissolution deed was not registered but was simply attested by a Notary, having no value under the provisions of the Transfer of Property Act. Such observation, it is seen, has no relation whatsoever with either the objects of the Trust or its activities. Moreover, the dissolution deed has not been shown to be required to be registered for the purposes of granting of registration to the assessee trust. The observations of the learned CIT in this regard are, therefore, not in any way detrimental to the assessee’s claim of registration. The learned CIT has not observed any of the objects to be not to his satisfaction. None of these objects has been stated to be outside the purview of section 2(15) of the act, which holds "charitable purposes" to include relief of the poor, education, medical relief, and the advancement of any other object of internal public utility. Then, APB 6 to 8 is a copy of the balance subject of the assessee trust, as on 31-3-2005. It shows that all the income earned by the trust has been invested in the trust only. Further, the earned CIT has not, anywhere in the impugned order, doubted either the genuineness of the activities of the trust, or its objects. It has not been stated that any object of the trust is not that of charity or that the income of the trust has been used for the purpose of the trustees or their families and had not been utilised for charity. Thus, in the absence of any dissatisfaction of the earned CIT with regard to either the objects or the genuineness of the activities of the trust, registration has been refused to the trust in violation of the provisions of section 12AA of the Act. The reasons recorded for such rejection of registration we entirely extraneously to the requirement of the said section. Grant of registration u/s 12AA of the Act only relevant consideration is the satisfaction of the CIT regarding the objects of the trust and the genuineness of its activities. Hence, the grievance of the assessee was entirely justified and was accepted as such - In the result, the appeal of the assessee is allowed.
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