INCOME TAX ACT, 1961

Section 12AA

Charitable trusts - Denial of registration under section 12AA - Imparting training to employees of State Government whether to be construed as object of general public utility -

Assessee was registered under Bombay Public Trust Act, 1950 and was also registered under Societies Registration Act, 1860. Its object was of training to state government employees. CIT(E) denied registration under section 12AA to assessee holding that it was not doing any general charitable activities of public utility and was into training departmental officers and staff of State Revenue Department. Held: Finding recorded by CIT(E) that, registration could not be granted to assessee as it was involved in imparting training to employees of State Government, was incorrect and contrary to the law. Object of general public utility is wider and larger object which encompasses object like imparting the training to Government employees working in various Department and Revenue. Government employees working with State government belongs to various State of society and they are not restricted to one religion, caste or creed. If there is an improvement in their workmanship and the managerial skill then it will indirectly benefit public and also to the Government. CIT(E) was directed to issue registration certificate from date of application under section 12AA.

Followed:DIT v. National Safety Council (2008) 305 ITR 257 (Bom) : 2008 TaxPub(DT) 1497 (Bom-HC) CIT v. Andhra Prdesh Police Welfare Society (1984) 148 ITR 287 (AP) : 1984 TaxPub(DT) 0499 (AP-HC) M/s. Water and Land Management Training & Research Institute, Hyderabad v. DIT (2015) 40 ITR 559 (Trib.) : 2015 TaxPub(DT) 2644 (Hyd-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT