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2020 (12) TMI 43 - AT - Income TaxRegistration u/s 12AA rejected - non disclosing correct income in audited Income & Expenditure Account and in the return of income could not qualify the assessee trust as genuine and its conduct / activities could not be treated as genuine - HELD THAT:- A perusal of the impugned order passed by the Ld.CIT(Exemptions), Pune shows that there was no doubt raised by him about the charitable nature of the objects of the assessee trust but raised doubts about the genuineness of the activities of the trust on the ground that the funds raised by the assessee trust for the purpose of acquiring fixed assets were not offered to tax and the said income was not reflected in the Income & Expenditure Account of the assessee trust. As rightly contended by assessee by relying on the decision in the case of ITO (Exemptions) Vs. Serum Institute of India [2018 (2) TMI 103 - ITAT PUNE] the said receipts representing contribution towards corpus funds were capital in nature and the same therefore, were not chargeable to tax. Similarly, the said receipts of capital in nature representing corpus funds were directly taken to the Balance Sheet by the assessee trust and there was no question of reflection of the same in its Income & Expenditure Account. At the time of hearing before the Tribunal, the Ld. DR contended that no evidence was filed by the assessee to show that the said receipts were in the nature of corpus donations. However, as pointed out by the assessee from the submissions made before the Ld.CIT(Exemptions), details of corpus donations were furnished by the assessee before the Ld.CIT(Exemptions), Pune and even the utilization of the same for purchase of assets was also duly established. Keeping in view all these facts of the case, we are of the view that there was no justifiable reason for the Ld.CIT(Exemptions), Pune to doubt the genuineness of the activities of the trust and to deny it registration u/s 12AA of the Act. We therefore, set aside the impugned order passed by the Ld.CIT(Exemptions), Pune rejecting the application of the assessee for grant of registration u/s 12AA - Decided in favour of assessee.
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