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| The Tax Publishers2020 TaxPub(DT) 4518 (Pune-Trib) INCOME TAX ACT, 1961
Section 12AA
In view of decision held in case of Ananda Social and Educational Trust (2020) 272 Taxman 7 (SC) : 2020 TaxPub(DT) 1340 (SC), merely on the fact that assessee society had not spent any amount of its income for charitable activities, does not amount to carrying on the activities contrary to its objects. In view of said legal position, the order of CIT(E) denying registration under section 12AA could not be sustained in the eyes of law.
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Charitable trust - Registration under section 12AA - Denial thereof on the ground of assessee-society not having spent any amount of its income for charitable activities -
Assessee society filed appeal against the order of CIT(E) denying registration under section 12AA on the ground that it had not undertaken any charitable activities pursuant to objects on which it was set up activities of the trust in the last three financial years. Held: It was not the case of the CIT(E) that the objects of the assessee society are not charitable in nature. The reasoning of the CIT(E) was not tenable under the law in view of the recent judgment of in the case of Ananda Social and Educational Trust (2020) 272 Taxman 7 (SC) : 2020 TaxPub(DT) 1340 (SC) where in it was held that merely because the trust has not spent any amount of its income for charitable activities does not amount to carrying on the activities contrary to its objects. In the light of said legal position, the order of CIT(E) could not be sustained in the eyes of law.
Followed:Ananda Social and Educational Trust (2020) 272 Taxman 7 (SC) : 2020 TaxPub(DT) 1340 (SC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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