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2021 (9) TMI 749 - AT - Income TaxExemption u/s 11 - rejection of application for granting registration u/s.12AA - satisfaction of object of the trust are genuine and charitable u/s 2(15) - HELD THAT:- Commissioner is bound to consider whether the objects of the trust are genuinely charitable in nature and whether the activities which the trust proposed to carry on are genuine in the sense that they are in line with the charitable objects of the Trust. Requirements of Section 12AA of the Act are categorically clear and it is in that respect, the Hon’ble Apex Court M/S. ANANDA SOCIAL AND EDUCATIONAL TRUST VERSUS THE COMMISSIONER OF INCOME TAX & ANOTHER [2020 (2) TMI 1293 - SUPREME COURT] had held that at the time of granting registration u/s.12AA, the Commissioner is supposed to look into the objects of the trust whether they are charitable or not or whether the activities of the trust are genuine and such activities may also include ‘proposed activities’ of the assessee trust and it should be in line with the charitable objects of the assessee trust. The satisfaction regarding objects and the activities performed or proposed to be performed could not be arrived at by the Ld. CIT(Exemption) since requisite details/evidences were not filed by the assessee. We are of the considered view, in the interest of justice, the matter may be remanded back to the file of the CIT(E) to adjudicate as per law considering the details/ evidences/documents to be filed before him or which may have been filed before him by the assessee while complying with the principles of natural justice. In view thereof, we set aside the order of the CIT(E) and remand the matter back to his file as indicated hereinabove. Appeal of the assessee is allowed for statistical purposes.
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