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2021 (3) TMI 83 - HC - Income TaxExemption u/s 11 - registration filed under Section 12 AA and approval under Section 80G(5) denied - as per CIT-A Trust is not genuine and they are not engaged in any charitable activities - Tribunal setting aside the order of the Commissioner of Income Tax and direct the Commissioner of Income Tax to grant registration under Section 12AA - HELD THAT:- It is not in dispute that the Trust was constituted on 09.02.2009 whereas they sought for registration and approval on 09.06.2009 under Section 12AA and 80G(5) of the Income Tax Act respectively. The CIT, while rejecting the registration and approval, found that it was too early to give a finding with regard to the genuineness of the objects of the Trust for the reason that the activities were not commenced on the date of application. When the genuineness of the objects of the Trust were not questioned by the CIT and when the Trust was yet to commence its operation and when a subject matter of scrutiny by the CIT as contemplated under section 12 AA(3) of the Income Tax Act, the Revenue would not be justified in refusing the registration at the threshold. The said ratio was laid down in a judgment reported in CIT Vs. Arulmighu Sri Kamatchi Amman Trust [2012 (2) TMI 159 - MADRAS HIGH COURT] Following the ratio laid down in the judgment, the Hon'ble Division Bench of this Court directed the CIT to register the Trust. The ratio laid down by the Hon'ble Division Bench of this Court squarely applies to the facts of the present case. We do not find any error or irregularity in the order passed by the Income Tax Appellate Tribunal - approval under Section 80G(5) also to be granted - Decided against revenue.
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