Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 319 - AT - Income TaxRegistration u/s 12AA - rejected on invocation of Section 13(1)(ii) and lifelong membership of the trustees and assessee being both society and Trust - assessee Trust running a school - Held that:- CIT while granting registration U/S 12AA has to look into the objects of the Trust and whether the Trust is carrying on the said objects of the Trust. See Surya Educational & Charitable Trust(2011 (10) TMI 47 - PUNJAB AND HARYANA HIGH COURT). Objects of the present assessee Trust were in the line of Education and the assessee was running both school and college. Once a Trust is engaged in the activities of providing Education by way of setting up school and college, which is one of the recognized object of charitable activity and no evidence having being brought on record, that the said activities of the Trust were not genuine, the said Trust is entitled to Registration u/s 12AA. The satisfaction of conditions of Sec. 11 to 13 is to be gone into by AO, while determining the income of Trust at the time of assessment and not to be gone into by CIT, while granting registration U/s 12AA. On objection that assessee is both Trust and society is recognized system and once it is registered as Trust, provision of election are not applicable to Trusts. The next objection that Trustee and their successor were lifelong member and hence activities of trust being not genuine are not correct, it is held that Rule against perpetuity is not applicable in case of Public charitable Trust, as per section 18 of Transfer of Property Act. CIT directed to grant Registration U/S 12AA - Decided in favor of assessee
|