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2015 (12) TMI 1369 - AT - Income TaxRegistration under section 12AA - CIT had rejected to grant registration U/s.12AA because the assessee was yet to commence its charitable activities and therefore, genuineness of the activities could not be established -BHeld that:- no justification in the action of the Ld. CIT for refusing to grant registration U/s.12AA of the Act on this flimsy ground. The assessee trust is in the incubation stage, and has not carried out its objects at the time of application seeking registration U/s.12A of the Act. Only after getting recognition of the Act, the assessee Trust will be able to seriously pursue its objects. Further on perusing the objects of the trust, we find that they are both religious and charitable in nature because the objects of the Trust provides so. Trust deserves to be granted registration U/s.12AA of the Act. Unless the registration is granted to the assessee trust, it would be difficult for the assessee trust to pursue its objects. Therefore, it is the primary duty of the Ld. CIT to grants registration U/s.12AA of the Act after examining the objects and genuineness of the trust. In this case before us there is nothing adverse to suggest the genuiness of the Trust or its objects. Considering the facts and circumstance of the case, we are of the considered view that the Ld. CIT ought to have granted registration when the assessee has categorically explained the cause of delay in conducting the activities of the trust. Therefore we hereby direct the Ld.CIT to grant registration U/s.12AA of the Act to the assessee Trust, needless to mention that at the time of assessment the Ld.A.O shall be at liberty to withdraw the benefits if the Trust has violated any of the provisions of the Act. - Decided in favour of assessee.
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