Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1116 - AT - Income TaxRegistration U/s 12AA - Exemption u/s 11 - charitable activity OR business - assessee U/s 8 company in providing micro finance to economically and financially weaker section without any discrimination as to caste, creed, religion or sex for earning their livelihood at nominal rate of interest on their personal guarantee only - HELD THAT:- Primary and predominant object of the assessee are to promote the welfare of the economically weaker and destitute persons of the society by way of providing finance at concessional rate of interest and without asking for any security. Thus prima facie the object of the assessee are charitable in nature in terms of Section 2(15). CIT(E) has conducted inquiry through AO and the assessee was not given an opportunity to reply to such adverse inquiry against the assessee. CIT(E) has also not considered the very purpose of formation of the assessee U/s 8 of the Companies Act with charitable object. Section 8 of the Companies act provides the registration of companies with charitable objects and also ensures that the activity as well as the funds of the company cannot be used for the individual benefit but it should be strictly as per the objects of the company. Even in the case of winding up/ dissolution of the company if any asset remains after satisfaction on debt and liability the same shall be transferred to another company register U/s 8 of the Companies Act therefore, ample safeguard has been provided U/s 8 of the Companies Act to prevent to misuse of the funds and activity of such company. CIT(E) has not considered all these aspect while passing the impugned order, therefore, in the facts and circumstances of the case, we set aside this matter to the record of the ld. CIT(E) for considering all the relevant facts as well as the contentions of the assessee and also to give an opportunity to the assessee of hearing and present its case to explain each and every objection of the ld. CIT(E) before passing fresh order. - Appeal filed by the assessee is allowed for statistical purposes.
|