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2020 (2) TMI 1149 - HC - Income TaxExemption u/s 11 - benefit of registration u/s 12AA denied - Object Clause 3.3(e) of the Trust Deed provides for development of new drugs or medicines, Object Clause 3.6(g) speaks about printing, publishing and selling journals, periodicals, books etc., Object Clause 3.8(f) mentions about establishing financial institutions etc., and therefore the learned Commissioner felt that the Assessee Trust might itself engage in business activities and therefore not entitled to registration under Section 12AA - HELD THAT:- Mere apprehension on the part of the Revenue authorities that the Object Clause of the Trust Deed provided for development of new drugs / publication of journals etc., cannot per se amount to any business or trading activity on the part of the respondent Trust. These activities are prima facie incidental to the charitable activity of providing good health and medical relief to the affected persons. The learned Tribunal however has made it clear in its order that it is even otherwise open to the Revenue authorities under the provisions of the Act to consider the factual aspects of the matter as to whether the Trust is engaged in any business activity or not upon granting annual renewal of such registration under Section 12AA of the Act and therefore unless the Charitable Trust is found to be engaged in the business or trading activity apart from the charitable purposes for which the Trust is incorporated, the benefit of registration under Section 12AA of the Act cannot be denied to the Trust. Therefore Tribunal was perfectly justified in allowing the appeal filed by the Assessee and directing the Revenue authorities to grant registration under Section 12AA of the act to the applicant / Assessee. - Decided against revenue.
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