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2016 (8) TMI 1220 - AT - Income TaxApplication u/s 12A rejected - Procedure for registration - Held that:- The funds of the trust shall always be invested in various securities, which are permitted by law. Apparently, the provision of section 11(5) specifies the permissible investment. At present trust has admittedly not invested in non specified investments. In case if subsequently any violation of those sections is found, the provision of section 11, 12 and 13 may accordingly apply to the trust. Further provision of section 11(4) gives ample power to the ld CIT (A) to withdraw the registration to the trust if any time it is found that there is violation of the objects of the trust or there is violation of the Income tax Act. Undisputedly, the activities of the assessee trust are eligible for registration. In our opinion rejection order passed by the Ld CIT (A) does not contain the reasons which can justify the rejection of the application of assessee trust u/s 12 AA of the Act. In view of this we direct the ld CIT (A) to examine the objects and genuineness of activities of the trust and after proper enquiry may grant registration.
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