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2018 (4) TMI 185 - AT - Income TaxApplication for the grant of registration made by the assessee u/s 12AA and approval u/s 80G(5)(vi) rejected - Held that:- The undisputed fact is that the objects of the trust have not been doubted by the learned CIT(Ex). The allegation of the CIT(Ex) is that the trust has not started any activity and therefore it was not possible for him to satisfy about the objects and genuineness of activities before granting the registration in pursuance to the provisions of section 12AA of the Act. The law is now well settled that if the activities of the trust are at the commencement stage then the Ld CIT(Ex) cannot refuse the registration u/s 12AA of the Act without finding out any defect in the objects of the trust. The powers of CIT(Ex) are limited to the aspect of examining whether the objects of trust are charitable in nature or not. It should be kept in mind that at the stage of commencement of institution/ assessee Trust, it is not relevant to decide whether the Trust has actually carried out the charitable activities because in this case it is at the infant stage only i.e. within 6 months of its incorporation the relevant applications were moved by the appellant. In view of above, we are inclined to direct the Ld. CIT(E) to consider the applications for registration u/s 12AA of the Act and u/s 80G of the Act afresh - Decided in favour of assessee.
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