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2014 (12) TMI 469 - AT - Income TaxRejection of claim of the assessees for registration u/s 12AA and 80G(5) - details of donation received in Cash - Genuineness of the objectives of the assessee – Held that:- Assessee contended that he has claimed receipt of cash donation of ₹ 44.73 lacs and he is not satisfied about the details provided in respect of these donations - there is no objection of CIT regarding the objects of these assessee trusts – the basis of CIT in doubting the genuineness of cash donation is that the identity of Shri Pawan, who has issued the receipts is not known and no salary was debited in the books of account on account of payment to Shri Pawan - this is not valid for deciding the claim of the assessee regarding registration - regarding the receipt of donation from various persons below ₹ 5,000/- each, although some doubt are raised by CIT but names and addresses of the donors are brought on record by the assessee and the amount of donation from each donor being very small being less than ₹ 5,000/- each, there is no merit in the objection of CIT in rejecting the claim of the assessee for registration u/s 12AA of the Act. Regarding the second donation of receipt of donation, Bhalchandra Educational Trust, the finding of CIT is not correct because the amount of ₹ 40 lacs was given by Bhalchandra Educational Trust to both the assesses trusts as a loan and not as donation and moreover, the third trust has already been granted registration on 08/12/2009 u/s 12AA and no adverse inference can be drawn on this account - trustees and objects of the trust is identical with these two trusts – under identical facts, registration is already granted by learned CIT himself to Bhalchandra Educational Trust, there is no reason to deny registration to these two trusts - assessee has invested an amount on acquiring the land and on account of building – the two trusts have already undertaken activities to fulfill their charitable objects in a big way – thus, CIT was not justified in rejecting the claim of the assessees for registration u/s 12AA and 80G(5) of the Act – Decided in favour of assessee.
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