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2014 (1) TMI 1192 - AT - Income TaxRejection for registration u/s 12AA - Held that:- Section 12AA of the IT Act provides procedure for grant of registration and the ld. CIT shall have to satisfy himself about the objects of the trust or institution and the genuineness of its activities before granting or refusing to grant registration under the above provisions - The objects of the assessee and genuineness of its activities shall have to be considered in the light of the material produced on record - The ld. CIT required the assessee to produce relevant documents/records of the assessee society - The ld. CIT quoted three of the objects of the society in the impugned order and found that dominant objects of the assessee are for the benefit of Agarwal Community only - The assessee society earned income of Rs.17,96,148/- and incurred expenditure of Rs.20,74,763/- in organizing "Shree Maharaja Agrasen Jayanti etc.", the activities meant for Agrawal community. The other expenses shown by the assessee society were for donation, website expenses, stationery, bad debts, bank charges, misc. expenses, salary expenses and scooter expense. It was, therefore, evident that the assessee society has incurred expenses mainly on organizing Shree Maharaja Agrasen Jayanti etc. and other expenses incurred by it are not related to any charitable activity - No documentary evidence in support of activities of general public utility was furnished by the assessee society - It can be inferred that the assessee has no intention to carry out any activity for general public and its objects are merely on paper - It could be inferred that even though the assessee has taken certain other objects in its memorandum of association, but the same have never been acted upon or brought into existence to take care of general public - The ld. CIT was, justified in holding that none of the expenses incurred by the assessee are related to any charitable activity - The ld. CIT, found that no charitable activities for general public utility have been carried out by the assessee society - Decided against assessee.
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