The Tax Publishers2020 TaxPub(DT) 0804 (Bom-HC) : (2020) 425 ITR 0166 : (2020) 317 CTR 0518 : (2020) 270 TAXMAN 0021

INCOME TAX ACT, 1961

Section 12AA(3)

A perusal of order passed by DIT(E) showed that no finding was recorded that activities of assesse-trust were not genuine or were not being carried out in accordance with objectss of the Trust. What DIT(E) had done was that he took the view that assessee was hit by proviso to section 2(15). Such a satisfaction might lead to denial of exemption but certainly could not be a ground for cancellation of registration under section 12AA(3), especially when tribunal had recorded a finding that activities of the assesse were genuine.

Charitable trust - Cancellation of registration under section 12AA(3) - Cancellation on the ground that activities undertaken by assessee could not be said to be charitable in nature in view of proviso to section 2(15) - No finding was recorded that activities of assesse-trust were not genuine or were not being carried out in accordance with objects of the Trust

DIT(E) cancelled registration under section 12AA(3) on the ground that activities undertaken by assessee could not be said to be charitable in nature in view of the proviso to section 2(15) inserted with effect from 1-4-2009. Held: A perusal of order passed by DIT(E) would show that no such finding was recorded that activities of assesse-trust were not genuine or were not being carried out in accordance with objects of the Trust. What DIT(E) had done was that he took the view that assessee was hit by proviso to section 2(15). Such a satisfaction might lead to denial of exemption but certainly could not be a ground for cancellation of registration under section 12AA(3). Accordingly, cancellation of registration under section 12AA(3) was not sustainable especially when tribunal had recorded a finding that activities of the assesse were genuine.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



IN THE BOMBAY HIGH COURT

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