Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 905 - AT - Income TaxRegistration under Section 12AA - charitable purposes - Held that:- Out of 40 objects of the Trust only one object No. 4 and its sub-clauses, as mentioned by the ld. CIT, no doubt throw light on the benefit of Christian Community, but the ld. CIT has failed to give any comment on the other prime objects of the assessee trust, which are undisputedly for the purpose of charity for public at large. The ld. CIT has considered and resorted to the provisions of section 13(1)(b) of the Act, but he has not considered the fact that the provision of section enacts a bar to the availability of exemption under section 11 in respect of various incomes enumerated therein, meaning thereby that the provisions of section 11 are not applicable when the provisions of section 13 are attracted in a particular case. This section, however, does not lay any bar on granting of registration if it is found that the objects of the trust are charitable or religious. To be more clear, the provisions of this section is applicable while considering the exemption claimed by the assessee trust u/s. 11 of the Act at the assessment stage and not at the stage of granting registration u/s. 12AA. We are not inclined to support the order of the ld. CIT and we hold that the assessee-trust is eligible for registration u/s. 12AA of the Act. The ld. CIT is, therefore, directed to grant registration to the assessee trust. Appeal of the assessee is allowed
|