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2022 (12) TMI 737 - AT - Income TaxExemption u/s 11 - rejection of application for registration u/s. 12AA - Charitable activity u/s 2(15) - whether the purpose of Trust or Institution involves the carrying on of any activity of profit? - as in the present case of the assessee Trust where the objects of the Trust comprise of relief of the poor, education or medical relief, etc.- HELD THAT:- From conjoint reading of the Trust Deed, it is axiomatic that primary purpose/objects of the assessee enumerated in the Trust Deed are charitable in nature - The other clauses of the Trust Deed had to be necessarily read in the context of the aforesaid clauses. Even otherwise, the activities of the assessee as set out in the Trust Deed are covered within the ambit of charitable purpose being primarily for medical help and relief to poor besides imparting value addition to general public through spiritual teaching and education from madrasa and masjids. The aforesaid activities in consonant to objectives of the trust has not been disproved by the Ld. CIT(Exemption). Therefore, the issue with regard to the activity of the assessee being not that of commercial or business in nature, the issue of cash transaction cannot be gone into at the time of consideration of the application under section 12AA of the Act. Thus we hold that the order of the CIT(E) is perverse to the facts on record. We further hold that there was no material on record to hold that objects of the trust were either not charitable in nature or its activities were not genuine. Therefore, CIT(Exemption), Chandigarh is directed to grant the registration u/s. 12AA of the Act to the appellant trust from the date of application. Appeal filed by the assessee is allowed.
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