INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Proof of charitable activity under section 2(15) -

Assessee filed application claiming registration under section 12AA. CIT(E) rejected the application made by assessee-trust on the ground that income was not being applied in conformity with the aims and objects and that activities of the society are not for charitable purposes. Tribunal accepted the appeal of assessee holding that while considering the application for claiming registration under section 12AA, scope will not be to consider that the income was being applied in conformity with the aims and objects.Held: CIT(E) while processing the application for registration has to look into the genuineness of the activities of the trust and satisfy himself about the genuineness of the activities. There was no illegality in the order of the Tribunal directing grant of registration to the society. However, it would be needless to state that in case the revenue subsequently comes to the conclusion that the activities of the society were not for charitable purposes, it would always be at liberty to initiate action in accordance with law including invoking of sub-section (3) of section 12AA. Thus, no substantial question of law arises in the present appeal.

REFERRED : CIT, Meerut v. A.R. Trust Appeal No. 112 of 2013 : 2017 TaxPub(DT) 4287 (All-HC), CIT-II, Chandigarh v. Surya Educational & Charitable Trust (2013) 355 ITR 280 (P&H) : 2012 TaxPub(DT) 0780 (P&H-HC) and Sanatam Dharam Educatoinal Charitable Society, Phagwara v. CIT (Exemption) [ITA No. 600/Asr/2018, dt. 5-4-2019].

FAVOUR : In assessee's favour.

A.Y. :

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