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2015 (10) TMI 1444 - ITAT MUMBAIRegistration u/s.12A denied - Held that:- At the time of registration u/s.12A, the CIT is required to verify the objects of the trust and genuineness of its activities. If the objects of trust is charitable and its activities are genuine, the registration is to be granted. If subsequently it is found that assessee is not following its object or that objects are not charitable or its activities are not genuine then during the course of assessment, the AO has all the powers to tax such receipts of the trust which are non-charitable or commercial in nature or to apply the provisions of Section 13 of the Act so as to exclude inform from properties held under a trust for private religious purposes which does not enure for the benefit of the public. During the course of assessment, the AO is also empowered to exclude such receipts/income of the trust if he finds that any funds of the trust or institution are invested or deposited in any form or mode specified in sub-section (5) of Section 11. The AO is also empowered to exclude income of such trust from the provisions of exemption if he finds that such funds were utilized for benefit of any of the persons, who made substantial contribution to the trust or institution, any trustee of the trust or manager of the institution or any concern, in which any of the persons referred in clause (a), (b), (c) and (d) of the sub-section 3, as substantial interest. Furthermore, various clauses in the trust deed with regard to promote education, medical relief in no way amounts to carry on any business so as to deny the claim of registration u/s.12AA. - Decided in favour of assessee.
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