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2023 (3) TMI 403 - AT - Income TaxExemption u/s 11 - application u/s 12A for grant of registration was rejected - Charitable activity u/s 2(15) - Objects of institutions or society trust AND genuineness of activities - PCIT (E ) stated that the applicant society has not submitted the certified copy of memorandum of association and bye-laws as submitted in the office of registrar of societies and firms/Joint stock Companies, thus in the absence of which the genuineness of activities of the society can not be corroborated with the stated aims and objects and the genuineness of the activities thereof - contention of the appellant that he has been granted provisional registration in form 10AC - HELD THAT:- The applicant trust has been created an arrangement whereby it is not only laundering its income but also diverting the same in the hands of the trustee/members. Thus, the CIT(E) held that the applicant trust is not established for the purpose of charity as its activity are restrictive and not in the interest of public at large rather it is misused as an instrument in the hands of trustee/members and thus, the activities carried out by it are not genuine by any definition. The assessee has merely alleged that PCIT(Exemptions) has not considered completely the information/ evidence brought on record in correct perspectives while denying the registration u/s 12AA - The assessee failed to file corroborative documentary evidence before the PCIT and even before us, in rebuttal to the observation of the PCIT that the activities of Applicant trust were not in consonance to the objectives of the Trust. In our view, the appellant Trust was not established for the purpose of charity. Meaning thereby that the appellant Trust was involved in activities which are not genuine by any definition. Since, the appellant Trust, is an ongoing entity, at the stage of grant of registration u/s 12AA of the Act, the Ld. CIT(Exemption) is supposed to examine both the objects of the Trust and genuineness of its activities in consonance to its objectives. In the present case, the appellant Trust has been an ongoing entity, actually carrying its activities, therefore, the Commissioner has been bound to record the finding to the effect whether the activity or activities actually carried on by the Trust were genuine and charitable in nature, in accordance to the objects of the Trust - the instant appellant trust has although have undertaken activities but contrary to the objects of the Trust. In our view, the PCIT while considering applications for grant of registration under section 12AA, is bound to examine not only objects of institutions or society trust, to ascertain genuineness of activities but he is also free to call for audited accounts or other such documents for recording satisfaction where society, trust or institution genuinely seeks to achieve object which it professes. - Decided against assessee.
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