INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - Rejection of application -

Assessee-society filed an application for grant of registration under section 12AA. CIT found fault with the application filed by the assessee firstly, on the ground that the instrument of creation had not been registered under the West Bengal Societies Registration Act, 1961. Secondly, the instrument of creation had not been produced in original. Thirdly, the date of establishment of the assessee/organization had not been mentioned in the instrument of creation. Accordingly, the CIT rejected the application for grant of registration under section 12AA. Held: It was found that assessee-society was formed on 22-9-2003, which was evident from the last page of the MOA, thus, the CIT failed on that ground. The other fault that was pointed out by the CIT was that the assessee had not filed the copy of the MOA in original; however, the assessee undertook to produce the original document before the CIT. Further, it was found that the assessee at the time when it applied for registration under section 12AA had not got itself registered with the West Bengal Societies Registration Act, 1961 and the mentioning of societies registration Act according to it was that it adopted the format given in the West Bengal Societies Registration Act. However, there was some development later and the assessee applied for registration of AOP under the West Bengal Societies Registration Act, 1961, the outcome of it must be in the knowledge of the assessee, which should be shared with the CIT and accordingly, the matter was remanded to the CIT to consider the application of the assessee for exemption under section 12AA afresh.

REFERRED : CIT v. M/s. Ambala Public Educational Society [ITA No. 118 of 2016 (P&H High Court)] : 2018 TaxPub(DT) 7447 (P&H-HC) Laxminarayan Maharaj and another v. CIT (1984) 150 ITR 465 (MP) : 1984 TaxPub(DT) 0773 (MP-HC)

FAVOUR : Matter remanded

A.Y. :

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