Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1409 - AT - Income TaxApplication for approval u/s 10(23C)(vi) rejected - Scope of powers of the Chief Commissioner of Income Tax before granting approval under the said clause - reason given by the Chief CIT denying approval is that the dissolution clause mentioned in the Memorandum of Association stated that in the event of dissolution, all the movable and immovable property of the applicant society would remain with the Chairman, President and Secretary - Held that:- We find no merit in this contention of the Ld.Chief CIT. Firstly, the provisions of Section 13 (3) of the Act are not relevant for the purpose of granting approval under section 10 (23C)(vi) of Income Tax Act. As stated above, the only issue to be examined is the genuineness of the activities of the Trust. The benefit accruing to persons specified under section 13 (3) cast no reflection on the genuineness of the activities of the Trust. Even otherwise Section 13 of Income Tax Act is relevant only for the purpose of exemption granted under section 11 and is not relevant for the purposes of exemption granted u/s 10 (23C)(vi) of the Act at all. Moreover even for the purposes of registration granted u/s 12AA for claiming exemption u/s 11 of the Act, courts have held that section 13 has no relevance and need not be considered while granting registration .It has been held that the provisions of section 13 become applicable only after registration has been granted and is relevant only for the purpose of denying exemption in certain circumstances as stated thereunder. In view of the above, we set aside the order of ld. Chief CIT and direct that the assessee society be granted approval under section 10(23C)(vi) of Income Tax Act, 1961. - Decided in favour of assessee.
|