The Tax Publishers2020 TaxPub(DT) 1667 (Del-Trib)

INCOME TAX ACT, 1961

Section 12AA read with section 80G

CIT (E) was justified in rejecting application of assessee under sections 12AA and 80G as assessee was running a crime investigating agency parallel to the investigative agencies of the State and Central government which could not be categorised as charitable activity and there were inconsistencies or discrepancies in the accounts and the activities of assessee.

Charitable trust - Registration under section 12AA - Absence of charitable purpose -

Assessee-trust filed applications before CIT (Exemptions) in Form No. 10A and 10G seeking registration under section 12AA and grant of registration under section 80G. After verification of the objects and the activities, CIT (Exemptions) found that object of the trust were not charitable in nature and the activities were also found to be not genuine. CIT (Exemptions) had observed that assessee had created a facade by way of its appearance to create an impression in the mind of the general public as if they were working as government agency. CIT (Exemptions) had observed various inconsistencies in the accounts maintained by assessee trust and he rejected the registration under section 12AA and under section 80G. Held: It appeared that assessee was running a crime investigating agency parallel to the investigative agencies of the State and Central government. These types of activities could not be camouflaged as charitable activity in the nature of general public utility. CIT (Exemptions) had also pointed out inconsistencies or discrepancies in the accounts and the activities of the assessee. Thus, the rejection of applications under section 12AA and 80G was upheld.

REFERRED :

FAVOUR : Against the assessee

A.Y. :

IN THE ITAT, DELHI BENCH

BHAVNESH SAINI, J.M. & O.P. KANT, A.M.

National Crime Investigation Bureau v. CIT (E)

ITA Nos. 4756 & 4757/Del/2018

27 February, 2020

Against Assessee.

Appellant by: None

Respondent by: Manoj Kumar, CIT-D.R.

ORDER

O.P. Kant, AM

These two appeals by the assessee are directed against a common Order, dated 27-4-2018 passed by the learned Commissioner (Exemptions), New Delhi, rejecting the registration of the assessee trust under section 12AA of the Income Tax Act, 1961 (in short the Act) and 80G of the Act respectively.

2. The assessee has raised very detailed and lengthy grounds of appeal. In ITA No. 4757/Del/2018 grounds are running in 10 Para of legal size pages, which have been further summarised in three pages. The summarised grounds are reproduced as under :--

9. To summarize, the appellant hereby raises the following grounds of objection :--

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