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2017 (12) TMI 1740 - AT - Income TaxApproval claimed u/s 80G(5) - Exemption u/s 11 - denial of claim as assessee has not undertaken much activity in accordance with the objects - HELD THAT:- Commissioner has already granted registration u/s 12AA of the Act and approval u/s 80G was not rejected on the ground of not obtaining registration u/s 12AA of the Act but only on the limited ground that no activity has been carried out. The decision of ABACUS FOUNDATION VERSUS COMMISSIONER OF INCOME TAX (EXEMPTIONS) [2016 (11) TMI 390 - ITAT KOLKATA] as rightly been pointed out by the Ld. Counsel, supports the stand of assessee that if the activities of the trust are genuine, at the stage of commencement of institution, registration has to be granted automatically and claim u/s 80G of the Act can be followed with grant of registration. Ld. Commissioner (Exemptions) did not reject the request of the assessee for approval u/s 80G of the Act on the ground of not annexing the registration certificate u/s 12AA of the Act but on the limited ground that it has not undertaken much activity. At the inception of the institution, one cannot expect serious activities, since it needs funds and to obtain funds, the trust needs approval u/s 80G of the Act. Thus, the activities are interlinked with obtaining approval. Hence, mere fact that the assessee could not undertake much activity within the short span of 3 months, the Commissioner (Exemptions) should not have refused the claim of approval u/s 80G(5) - Decided in favour of assessee.
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