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2021 (12) TMI 452 - AT - Income TaxEligibility of registration u/s 12AA - Charitable activity u/s 2(15) - assessee submitted that it has registered u/s. 25 of the Companies Act, 1956 as a non-profit organization - HELD THAT:- On perusal of main objects of the assessee, there is no doubt whatsoever with regard to nature of objects of the assessee, because main object of the assessee is to conserve and enhance the natural environment and biodiversity so as to derive sustainable benefits for human kind from the mother nature, and said objects are falls under 5th limb of definition of charitable purpose, preservation of environment as defined u/s. 2(15) - As regard other observations of the ld. CIT(E) with regard to extending activities of the trust outside India, we find that there is no restriction under the Act to carry out charitable activities beyond the boundaries of India, but such activities can be carried out with special or general approval of the CBDT. Since, the assessee has not started its activities, the question of looking into the violation of section 11(1)(a) and necessary approval, if any required for that purpose does not arise. If at all any violation is reported, then the AO is very much empowered to reject exemption claimed u/s. 11 of the Act. As regards other observations made with regard to ancillary objects and they are in commercial nature, we find that predominant objects of the assessee is preservation of environment. The ancillary objects are provided to achieve the main objects and no commercial stamp shall be made, if such objects are achieved by carrying out certain activities. If at all the assessee carry out some objects which are commercial in nature, then the AO shall verify such activities in light of provisions of section 2(15) of the Act and examine entitlement of benefit of exemption u/s. 11A of the Act. But, for this reason registration u/s. 12AA cannot be denied to the assessee. Once, the objects of the assessee are charitable in nature, and it is proposed to carry out its activities in accordance to its objects, then the CIT(E) cannot reject application filed by the assessee for registration of the trust u/s. 12AA of the Act. we are of the considered view that objects of the assessee are charitable in nature and the assessee is proposed to carry out its activities in accordance with its objects and thus, the assessee is entitled for registration u/s. 12AA of the Act. Hence, we direct the CIT(E) to grant registration u/s. 12AA of the Act, to the assessee. - Decided in favour of assessee.
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