INCOME TAX ACT, 1961

Section 260A

Appeal (High Court) - Maintainability - No substantial question of law -

Tribunal directed CIT to grant registration under section 12AA to assessee-trust. Aggrieved, Revenue was in appeal. It contended that the Tribunal erred in directing the CIT to grant registration under section 12AA without examining the objects/activities of the trust at the entry level. It further contended that the Tribunal could not have replaced its own satisfaction with the satisfaction of the CIT. Held: Under section 12AA, the CIT could only register or refuse registration of trust and it could not direct the registration of the trust under a particular category as it had done in the instant case. Further, on perusal of impugned order of Tribunal, it was found that the Tribunal did not hold that the CIT should have granted registration to the assessee-trust without examining its objects and activities. Only the conditions imposed and the categorization of the trust were struck down. Moreover, the Tribunal also did not replace the satisfaction of the CIT with its own satisfaction. Accordingly, no substantial question of law arose for determination and consequently, the instant appeal filed by the Revenue was dismissed.

REFERRED :

FAVOUR : Against the appellant

A.Y. :

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