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2020 (3) TMI 1080 - HC - Income TaxExemption u/s 11 - denial of exemption as assessee trust is for benefit of a Sindhi community - Tribunal held that for granting registration u/s 12AA only 'nature of its object' and 'genuineness of the activities' of the trust are to be considered, even when the very basis and very object of creation of the trust was hit by the prohibition provided under Section 13(1) (b) - HELD THAT:- Referring to clauses of the trust deed, it cannot be said the trust is only religious trust. Thus, finding arrived at by the CIT that the objects of the trust were only for the benefit of a Sindhi community, is not correct. CIT was therefore not justified in rejecting registration of the Trust holding that the activities were carried out only for religious purposes as it would be the task of the Assessing Officer to be undertaken at the time of assessment on the basis of material that may be brought on record. At the time of registration of the trust under section 12AA of the Act, CIT is required to consider only 'nature of its object' and 'genuineness of the activities' of the trust. We are of the considered opinion that the respondent-trust is charitable and religious trust which does not give benefit to any specific religious community only, and therefore, it cannot be held that Section 13(1)(b) of the Act could be attracted to the respondent-trust, and thereby, it would be entitled to get registration under Section 12A of the Act. - Decided in favour of the assessee
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