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2018 (3) TMI 1408 - AT - Income TaxExemption u/s 11 - Rejection of Application to grant registration of Trust u/s 12AA - genuineness of the huge cash donation made by the Trustee - Held that:- We are of the considered view that certainly this is a subjective opinion of the ld. CIT because when cash donation by the Trustee has reached into the kitty of assessee Trust, its application for charitable purposes is to be examined at the time of assessment. So far as question of apprehensions raised by ld. CIT that under the garb of charitable activities, the Trustee are indulging into money laundering is concerned, this question can be taken care of by the appropriate forum as the person who is donating huge cash must be an incometax assessee, if not he or she can be brought to tax by the tax authorities. The object of the assessee Trust to be charitable and genuineness of the charitable activities are concerned, again when the assessee Trust has proved to have purchased the land to establish the educational institution and brought on record the sale deeds and also brought on record the complete detail of the construction work-in-progress being carried out by the assessee Trust and also brought on record copies of the bank ledger of the assessee Trust showing its complete income and expenditure, there is no material on record to dispute the same at the juncture of according registration u/s 12A rather all these apprehensions raised by CIT can be taken care of by the AO at the time of assessment and as such are beyond the purview of CIT (Exemptions). When the assessee Trust has brought on record all the necessary documents to achieve the aims and objects of the assessee Trust enshrined in its memorandum of articles and undisputedly is into charitable activities by establishing educational institutions, merely denying the registration on the basis of apprehensions, conjectures and surmises that since trustees of the assessee have donated huge cash amount to assessee Trust, there appears to be money laundering, is not sustainable in the eyes of law - Decided in favour of assessee
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