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2017 (12) TMI 1720 - AT - Income TaxCancelling registration granted u/s 12A - holding the activities of the assessee society as not being genuine and not being carried out in accordance with the objects of the trust - assessee is indulging in the activity of giving donations to other institutions - HELD THAT:- The assessee admittedly has given donations to various organizations as reproduced in earlier part of out order. When asked to show during proceedings before the Ld. Commissioner of Income Tax as to how they were actually utilized by the donee societies/institutions, nothing was shown by the assessee. The assessee has, therefore, neither established the user of the donations for charitable purposes, nor demonstrated that the said donee society was a charitable society registered u/s. 12A of the Act. Meaning thereby that the assessee society has not demonstrated the application of its funds for charitable purposes. The assessee, therefore, is not entitled to claim the donations as application of its income. In view of the above, we agree with the Ld. Commissioner of Income Tax that the assessee is indulging in the activity of giving donations to other institutions which is not in consonance with the approved objects of the assessee society. We, therefore, uphold the action of the Ld. Commissioner of Income Tax in cancelling the registration granted u/s. 12A of the Act by invoking the provisions of section 12AA(3) of the Act. - Decided against assessee.
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