Mariam Education Society v CIT

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The Tax Publishers2020 TaxPub(DT) 1825 (Del-Trib)

INCOME TAX ACT, 1961

Section 12AA

Registration under section 12AA could not be refused on the ground that trust did not commence the charitable or religious activity. Since all details were not examined by CIT(E), his order was set aside with a direction to decide it afresh on verification of objects and genuineness of the activities.

Charitable Trust - Registration under section 12AA - Registration whether can be refused on the ground that trust did not commenced the charitable or religious activity -

Issue was as regards rejection of registration of assessee under section 12AA by CIT(E) on allegation that assessee was not carrying out any Charitable activities. Held: In Hardyal Charitable and Educational trust [(2013) 355 ITR 534 (All) : 2013 TaxPub(DT) 1480 (All-HC)], after analyzing various judicial precedents on the issue in dispute, it was held that registration under section 12AA cannot be refused on the ground that trust has not commenced the charitable or religious activity. Question of exemption of the application of the income received by way of the donation being a separate issue might be examined in assessment proceeding of relevant years. Assessee had not provided any detail of activities for the period from its establishment till the date for applying registration. Assessee was required to provide all details regarding Constitution of its members, funds received and utilized towards charitable activities, etc. since inception of the society. Since all details were not examined by CIT(E), his order was set aside with a direction to decide it afresh on verification of objects and genuineness of the activities.

Followed:Hardyal Charitable and Educational trust [(2013) 355 ITR 534 (All) : 2013 TaxPub(DT) 1480 (All-HC)]

REFERRED :

FAVOUR : Matter remanded

A.Y. :

IN THE ITAT, DELHI BENCH

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

Mariam Education Society v. CIT

I.T.A. No. 5796/Del./2017

1 May, 2020

Appellant by: J.P. Jain, CA

Respondent by: Rakhi Vimal Sr. DR, Manoj Kumar, CIT(DR)

ORDER

O.P. Kant, A.M.

This appeal by the assessee is directed against Order, dated 22-8-2017 passed by the learned Commissioner of Income Tax (Exemption), Lucknow [in short 'the CIT'] rejecting the registration of the assessee under section 12AA of the Income Tax Act, 1961 (in short 'the Act'). The assessee has raised following grounds in the appeal :--

1. The learned CIT (Exemption) is unjustified, illegal and wrong for passing the order under section 12AA(1)(b)(ii) of the Income Tax Act for rejection of Application to grant registration of Society under section 12AA of Income Tax Act, 1961.