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2024 (1) TMI 1006 - AT - Income TaxExemption u/s 11 - charitable activity u/s 2(15) or not? - rejection of the application of the assessee for registration u/s. 12AB - HELD THAT:- On perusal of the objects of the society it is apparent that the society has charitable objects and, therefore, the request of the society for grant of registration u/s.12AB cannot be denied on the basis of assessment of the activities, which has actually been carried out by the assessee society. Hon’ble Apex Court in the case of Ananda Social & Educational Trust [2020 (2) TMI 1293 - SUPREME COURT] has even held that the “activities” in the provision includes 'proposed activities'. As decided in Shri Agrasen Jan Kalyan Trust [2024 (1) TMI 407 - ITAT RAIPUR] since the actual activities of the trust cannot be the deciding factor while granting the registration u/s. 12A but the object of the trust should have been looked into, the activities have to be looked into by the AO at the time of assessment proceedings. It is also a fact that the trust was formed with charitable objects eligible for approval u/s. 12AA of the Act, which is substantiated by the department itself by granting registration u/s. 12AA. In such circumstances we are of the considered opinion that the rejection of application for registration u/s. 12AA of the Act by Ld CIT(E) was an erroneous application of law - Thus we direct to grant registration u/s. 12AB in accordance with law - Decided in favour of assessee.
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