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2016 (6) TMI 121 - AT - Income TaxDenial of registration under section 12AA - charitable activity - Held that:- In view of finding of the Commissioner that the objects of present trust are charitable i.e. relief of the poor and further the genuineness of activities having been accepted that the assessee was running old age home, then on other surmises that the assessee has claimed exemption under sections 11 and 12 of the Act without the trust being registered under section 12A of the Act, does not stand. Further, the assessee was a public trust registered under the provisions of BPT Act, 1950 and where such recognition has been given to the trust, then it is established that the assessee is carrying on its charitable activities. The assessment proceedings or determination of income in the hands of assessee stands on a different footing and for that, provisions of the Act are there. Merely because the assessee had filed its return of income and claimed certain exemptions will not jeopardize the case of assessee as far as the grant of registration under section 12AA of the Act. The assessee having moved an application for registration, which was found to be in order and where the objects of the trust are charitable and activities of the trust are genuine, for the reason that surplus has been generated by the said trust does not merit its rejection. Further, we find no merit in the order of Commissioner in denying registration under section 12AA of the Act on the ground that there was delay in filing of initial application for registration under section 12A of the Act. The perusal of objects of the trust, clearly establish that the trust was established for carrying on charitable activities and as per clauses 5 and 6 of the Trust Deed, it was provided that the income of the trust fund or any part or parts of the trust fund or residue of the income would be applied for the benefit of all the persons irrespective of caste, creed, nationality or religion. Even if the said activity takes the colour of religious activity, the registration under section 12AA of the Act cannot be denied, where the assessee is engaged in both charitable and religious activities - Decided in favour of assessee.
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