INCOME TAX ACT, 1961

Section 12A

Charitable trust - Registration under section 12A - Funds given to another educational society for running similar activities on behalf of assessee-trust -

Assessee-society was aggrieved by order of CIT(E) and agitated denial of registration under section 12A of the Income Tax Act, 1961. CIT(E) rejected application on the ground that assessee was transferring funds to another trust. It was also alleged that it had failed to provide various entries and details relating to the cash withdrawals from the bank account. Further, it was alleged that activities of assessee-trust of skill development did not qualify as 'Education'. Held: In case of Unique Educational Society, Yamunanagar v. CIT, in almost similar facts and circumstances, similar activity of vocational education/training programme through ITI was held to fall within the purview and scope of term 'education'. It was further held that receipt from said activity was in course of carrying out of educational activity of the assessee. Further, since funds were given to another society for running of similar activities on behalf of assessee-trust, therefore, CIT(E) was not justified in rejecting the application of assessee trust on that ground. However, matter was remanded back to file of CIT(E) for limited purpose of examination of financial statement and application of funds to ascertain about genuineness of the activities of assessee.

Followed:Unique Educational Society v. CIT [ITA No. 1052/Chd/2018 Order, dated 6-8-2019]

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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