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| The Tax Publishers2020 TaxPub(DT) 2245 (Del-Trib) INCOME TAX ACT, 1961
Section 12AA
Where CIT(E) denied registration under section 12AA to assessee on allegation that receipts to tune of nearly Rs. 1 crore could not be believed to be generated from small premises, wherein assessee was running a school, considering CIT(E) did not verify his doubts regarding genuineness of activities, matter was restored to CIT(E) for reconsideration.
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Charitable trusts - Denial of registration under section 12AA - CIT(E) having doubts regarding genuineness of activities of assessee-society running a school -
Assessee society was running a school and was also having recognition from Department of Education, Government of Haryana. CIT(E) refused registration under section 12AA on allegation that cash from undisclosed sources was being introduced in assessee-society in form of school fees. Held: As observed by CIT (E), school was being run from premises that consisted of one hall and eight rooms only and was actually situated in a Gali. CIT(E) observed that it was unbelievable that receipts to tune of nearly Rs. 1 crore were generated from such small premises. Thus, apparently CIT(E) had doubts regarding genuineness of activities but instead of having same verified, he chose to straightway refuse grant of registration. That, was not correct. If CIT(E) had any kind of doubts, he should have got the same verified. Issue was restored to CIT(E) for reconsideration.
REFERRED :
FAVOUR : Matter remanded
A.Y. :
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