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2016 (7) TMI 510 - ITAT VISAKHAPATNAMEntitlement for registration u/s 12AA - non carrying any activities as per its objects - CIT(A) denied the exemption as no worthwhile activities are conducted by the society since its inception except plan approval for building construction, bank charges and society registration - Held that:- The objection raised by the Ld. Commissioner is not correct for the reason that the assessee society is existed very recently and therefore it will take some time to start its operations to achieve the objects as per the Trust deed. It is not possible for the assessee to achieve all the objects. In this case, the assessee wanted to construct a building for the purpose of establishment of library for which the trust has applied for approval before the competent authority that it has incurred certain expenditure. The Ld. Commissioner himself has accepted that the objects of the assessee are charitable in nature. However, he has rejected the registration u/s 12AA of the Act for the reason that the society has not commenced its operations. In our opinion, having accepted the assessee trust as charitable in nature, rejecting on the ground of non- commencement of operations and not granting registration u/s 12AA of the Act by the Ld. Commissioner is prematured. Also see Sanjeevamma Hanumanthe Gowda Charitable Trust Vs. Director of Income-Tax (Exemptions) [2006 (3) TMI 91 - KARNATAKA High Court ] - Decided in favour of assessee
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