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2016 (10) TMI 849 - AT - Income TaxRegistration u/s 12AA and exemption u/s 80G denied - non charitable activities - To Promote safety and the prevention of accidents in all areas of life at work at leisure on the road, in the home and through safety education in schools, institutions work places and all other locations - Held that:- DIT(E) has to satisfy himself about the object of the trust and the genuineness of its activities. From the order passed by ld. DIT(E) it is evident that she is not disputing that objects of the society are charitable in nature as she herself has said that the activities carried out by assessee were covered under fourth limb of section 2(15) viz. advancement of any other object of general public utility. At this juncture we may observe that we are not recording any findings as to under which limb of section 2(15) the assessee’s activities fell, because at this juncture we have only to examine whether the activities carried on by assessee are charitable in nature or not. This is not disputed by ld. DIT(Exemption). We may also clarify that as far as ld. DIT(E)’s finding regarding applicability of proviso to section 2(15) is concerned, we are not inclined to accept the same for the simple reason that assessee had received service charges from various organizations for conducting the programme and this cannot par take the character of business by any stretch of reasoning. Be that as it may, this cannot be basis for denying registration as it is nowhere so contemplated in the Act. Aassessee has filed copy of ledger account of service charges received. These service charges were mainly from big companies and, therefore, when these companies have contributed towards the programme carried out by assessee, it cannot be said that activities of assessee-society were not genuine. These companies must have sponsored only after considering their social responsibilities towards public at large. Further, we find that in paper book, assessee has also annexed various reports on its activities, which have not adversely been commented by ld. DIT(E). Photographs annexed in paper book show that various programmes were being conducted and people were listening to various speakers. Therefore, the assessee-society was carrying out the activities for which it was incorporated. Hence, genuineness of activities stands established. Thus, twin ingredients of section 12AA being satisfied, we do not find any basis for denying registration to the society and, therefore, we direct ld. DIT(E) to grant registration as the assessee fulfills the basic requirements for grant of registration u/s 12AA of the Act. As we have directed for grant of exemption u/s 12AA, we also direct for grant of registration u/s 80G as the sole basis for denying the exemption u/s 80G was not granting of registration u/s 12AA - Decided in favour of assessee
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