2023 (3) TMI 471 - AT - Income Tax

Exemption u/s 11 - application for registration u/s. 12A rejected - CIT(E) rejected the application on the ground that for corpus funds received before the exemption and there is absence of FCRA Certificate which is clear violation of FCRA norms related to foreign donation - HELD THAT:- The assessee is a charitable trust and applied for registration u/s 12AA. The ld. CIT(E) had not pointed out any lacuna related to the main object of the trust and activity related main object. The genuineness of the assessee also is not in question.

The two issues must be settled during registration U/s 12AA which are genuinity of trust & activities are related to main object of trust. The two limbs must be considered during registration. Only mere receiving of the corpus fund and rejection of application of FCRA should not be the ground for rejecting the registration u/s 12AA. We respectfully relied on the order of jurisdictional High Court in case of Shanti Devi Educational Trust [2017 (4) TMI 1065 - PUNJAB & HARYANA HIGH COURT] T.R. Gupta Public Charitable Trust [2022 (9) TMI 1086 - ITAT AMRITSAR] We set aside the order of the ld. CIT(E) and directed the authority to allow the registration of the assessee as per Act. - Appeal of assessee allowed.