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2012 (10) TMI 116 - AT - Income TaxRegistration u/s 12AA and Approval u/s 80 G - the purpose of promotion of family business and with profit motive - Held that:- As decided by in case of [Commissioner of Income-tax Versus Red Rose School 2007 (2) TMI 575 - ALLAHABAD HIGH COURT ] registration can be granted only if the Trust is created for Charitable and religious purpose in public interest.The assessee spent considerable amount on advertisement of the institution which never existed and further, prospectus of the assessee trust has devoted substantially on carrying out the business activities of group concern showing logo of milk product. These factors were sufficient to hold that the ld. CIT rightly rejected both the applications of the assessee, particularly when no educational or charitable activities have been actually carried out and the assessee in initial stage, assessee trust itself has tried to promote the business of group concern. assessee failed to establish that it has carried out genuine activities towards the objects of the assessee trust. Whatever other activities were carried out were found for promoting commercial activities of the group concern. Therefore, the assessee has failed to satisfy the requirements u/s. 12AA of the Act and as such, the ld. Commissioner was justified in refusing to grant registration and approval under the above provisions of the IT Act. Assessee has to make fresh application for registration as Trust and for grant of approval when it would actually start educational and charitable activities
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