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| The Tax Publishers2020 TaxPub(DT) 2653 (Del-Trib) INCOME TAX ACT, 1961
Section 12A and section 80G
Where CIT(E) had not disputed the charitable nature of activity of assessee but registration was rejected mainly due to non-genuineness of activity of assessee concluded on basis of non-submission of evidence by assessee and genuineness of the activities would mean that activities were not bogus or artificial or camouflaged by some means, therefore, it would be appropriate to restore the matter of registration under section 12AA back to CIT(E) for examining the genuineness of the activities to and appeal filed against rejection of approval under section 80G was also restored to CIT(E ) for deciding afresh.
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Charitable trust - Registration under section 12AA and approval under section 80G denied - Object of assessee-society -
Assessee initially filed application for registration under section 12AA which was dismissed due to withdrawal of the same by assessee. Present applications for registration under section 12AA and approval under section 80G were filed by assessee. It claimed to have worked in the field of improving the health and educational outcomes of the children, young people including mothers through programs like deworming, early childhood care, diarrhea and pneumonia management, etc. Assessee carried research and provided technical assistance/consultancy to various government departments engaged in field of health and malnutrition related problems. Registration under section 12AA was rejected by CIT(E) mainly on the ground that no evidence of actual activities were submitted by assessee and, therefore, genuineness of the activities of assessee could not be established. Consequently, approval sought under section 80G was also rejected. Held: CIT(E) had not disputed the charitable nature of activity of assessee but registration was rejected mainly due to non-genuineness of activity of assessee concluded on the basis of non-submission of evidence by assessee. The genuineness of the activities would mean that activities were not bogus or artificial or camouflaged by some means and whether the activities were in accordance with object of the institution. It would be appropriate to restore the matter of registration under section 12AA back to CIT(E) for examining the genuineness of the activities with the direction to assessee to submit the necessary details of the activities carried out supported by the evidences. The matter of approval under section 80G was an action consequent to the registration, therefore, appeal filed against rejection of approval under section 80G was also restored to CIT(E ) for deciding afresh.
Provisions:CIT v. Babu Ram Education Society (2018) 96 taxmann.com 606 (All) : 2017 TaxPub(DT) 5316 (All-HC)
REFERRED :
FAVOUR : Matter remanded
A.Y. :
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