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2018 (10) TMI 1800 - AT - Income TaxExemption u/s 11 - refusing to grant the Registration u/ s 12AA - Appellant is not registered under the provisions of the MP Public Trust Act, 1951 - HELD THAT:- Provisions of Section 12AA(1) of the Act provides that “Principal Commissioner or Commissioner, on receipt of application for registration of the Trust or Institution made under Clause a or Clause aa of Sub-Section 1 of Section 12A can call for such documents or information as he thinks necessary in order to satisfy himself about the objects and genuineness of activities of the Trust or Institution and also make such enquiries as he may deem necessary in this behalf and after satisfying himself about the objects of the Trust or Institution and the genuineness of its activities he may pass an order in writing registering the Trust or Institution or if he is not so satisfied, he may pass an order in writing refusing to register the Trust or Institution. Provision of Section 12AA(1) of the Act refers to the “Trust or Institution”. There seems to be no requirement for a trust to be mandatorily registered as a Public Charitable trust in the State of India where it is located. The action of Ld.CIT-Exemptions denying the registration merely for the reason that the assessee Trust was not registered as a public Charitable Trust cannot be held to be justified. Issue of registration u/s 12AA of the Act needs to be set aside to the file of Ld.CIT-Exemptions for denovo adjudication as per the provisions of I.T. Act so as to satisfy himself about the genuineness of the activities as well as objects of the Trust to be a charitable in nature. Appeal of the assessee is allowed for statistical purpose.
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