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2015 (2) TMI 323 - AT - Income TaxDenial of registration under section 12A - clause No.23 of the object clause of the Trust Deed was specifically for the benefit of Jain community and the Trust had not commenced its activities as yet - Held that:- Ratio laid down by Hon'ble Allahabad High Court in Hardayal Charitable & Educational Trust v. CIT-II (2013 (3) TMI 377 - ALLAHABAD HIGH COURT) wherein it was held that at the time of registration under section 12A of the Act, it is not necessary to look into the activities vis-ŕ-vis claim of exemption under sections 11 and 12 of the Act. The Hon'ble Supreme Court in CIT v. Dawoodi Bohara Jamat (2014 (3) TMI 652 - SUPREME COURT) had also laid down similar proposition. Accordingly, the view favourable to the assessee is adopted for deciding the issue. In the totality of the above said facts and circumstances and the legal propositions, we find no merit in the order of CIT in this regard and accordingly, we direct the CIT to grant registration to the assessee Trust under section 12A of the Act and pass the order under section 12AA of the Act registering the said Trust. The assessee in the present facts and circumstances of the case, had in its objects recognized the field of education as the activity to be carried on. Merely because that the said activity has not started, does not dis-entitle the assessee from the claim of registration under section 12A of the Act. No merit in the order of CIT in refusing to grant registration under section 12A of the Act, as the assessee had not started its activities. Following the above said ratio laid down by Hon'ble High Court of Gujarat in Director of Income Tax (Exemption) v. Panna Lalbhai Foundation [2013 (8) TMI 110 - GUJARAT HIGH COURT] , we direct the CIT to grant registration under section 12A of the Act and issue the necessary Certificate under section 12AA of the Act. - Decided in favour of assessee.
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