Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 890 - HC - Income TaxValidity to grant registration u/s 12AA – Whether the assessee who is carrying on business activity or indulging in developing the properties is entitled for registration u/s 12AA - Held that:- CIT(A) rightly held that there is no doubt that the objectives are charitable in nature and are covered u/s 2(15) - The tribunal also held that the trust is engaged in various charitable activities like feeding poor children in schools etc. and about 5,00,000 children are provided midday meals and food by the trust - They are also running Ayurveda Wellness Center and similar institutions affording treatment, cure, rest, recuperation and other medical relief to the public and therefore, there is no doubt that the trust is charitable in nature and covered by Section 2(15) of the Act and the activities of the trust are genuine - The trust is already engaged in various charitable activities for attainment of various objectives - There is no material to show that the income from business as provided in Clause 10 of the original deed dated 17.05.2004 would not be utilised by the trust for the purpose of achieving objectives of the trust. As held in Sanjeevamma Hanumanthe Gowda Charitable Trust Versus Director Of Income-Tax (Exemption) [2006 (3) TMI 91 - KARNATAKA High Court] - what the Commissioner has to look into is not the source of income of the Trust but whether such income is applied for charitable or religious purpose - The satisfaction of the Commissioner should be regarding the application of the income of the trust for the aforesaid purposes which only entitles the assessee to claim exemption - Once the trust deed shows the objectives of the Trust is charitable and the material on record, shows that the Trust is carrying on charitable activities, merely because they proposed to carry on the business in future to augment the income to support charitable purposes, the registration cannot be declined - the tribunal was justified in passing the order and directing the Commissioner to grant the certificate – Decided against revenue.
|