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2014 (1) TMI 673 - AT - Income TaxRegistration u/s 12AA - Held that:- Before grant of registration u/s. 12AA, the ld. CIT has to satisfy himself about the objects and genuineness of the activities of the assessee trust or institution. Other conditions are not relevant at the stage of grant of registration. The recognition u/s. 80G(5) is consequential to the grant of registration - Following Hardayal Charitable and Educational Trust vs. CIT-II, Agra [2013 (3) TMI 377 - ALLAHABAD HIGH COURT] - Most of the objections raised by the ld. CIT in the impugned order are not relevant for the purpose of grant of registration u/s. 12AA of the IT Act and approval of exemption u/s. 80G(5) of the IT Act - For grant of registration u/s. 12AA, The Commissioner of Income Tax is not required to look into the activities where such activities have not or in the process of its initiation - The objects of the Institution shall have to be seen - The issue of receipt of donations is not relevant - The registration could not have been refused on the ground that the trust has not yet commenced the charitable or religious activities. The assessee has filed copy of the aims and objects of the society, which shows that the assessee exists for educational and charitable purpose only, which is also supported by the report of DCIT - The assessee is at the stage of setting up the educational institution, the assessee society was set up to achieve its objects of establishing educational institution is in the process of establishing such institution and received donations - At this stage, the genuineness of the objects have to be tested and not the activities which have not commenced - The reasons given by the ld. CIT in the impugned order for rejection of applications are not relevant at this stage which may be a separate issue and arise whenever the return of income would be filed by the assessee and would be examined at assessment stage - Decided in favour of assessee.
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