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2014 (3) TMI 767 - AT - Income TaxRejection of application for registration u/s 12AA of the Act – Assessee incorporated for charitable purposes - Held that:- A perusal of the object clause of the company shows that it has been incurred with the aim of providing emergency medical transport services - Similar objects of the GVKEMRI has already been approved as charitable and registration u/s 12AA was already granted – the DIT(E), ignored the provisions of section 2(15) and the Board Circular issued on this subject, considered that assessee is involved in commercial activities, just because assessee is getting some fixed remuneration for operating ambulance, ignoring the fact that the services to the general public is free of cost by the assessee company. The assessee was incorporated for charitable purpose of providing medical relief - assessee even though incorporated as a private limited company originally, has converted itself into a non-profit company and has been incorporated u/s 25 of the Companies Act, 1956 - There is no doubt with reference to the objects which are charitable in nature - Relying upon Social Pedia Knowledge Foundation Versus Director of Income-tax (Exemptions) [2013 (12) TMI 357 - ITAT CHENNAI] - where the object of assessee-company was providing education etc., it is entitled to registration u/s 12AA, particularly when the assessee has been incorporated u/s 25 of the Companies Act, 1956 - The DIT(E), merely on certain assumptions has rejected the application of the assessee for registration under section 12AA - the DIT(E), selected some of the terms of the agreement so as to consider that assessee is a contract service provider, ignoring the overall object of the agreement and the activities of the assessee - The order of the DIT(E) is set aside and the DIT(E) is directed to grant registration to the assessee u/s 12AA – Decided in favour of Assessee.
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