INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - Allowability - Trust created for educational benefit and for providing assistance to children

Assessee made an application for registration of trust under section 12AA. CIT came to a finding that the objects of the trust were restricted to a particular community namely, 'M', i.e., to provide educational assistance to children of 'M'. Therefore, as the trust was created for benefit of a particular community, which did not endure for the benefit of public, accordingly, CIT concluded that the provisions of section 13(1)(b) were applicable and denied registration under section 12AA to the assessee. Assessee submitted that the trust came into existence on 7-9-1961 and registered under the Bombay Public Trust Act, 1961 on 3-3-1962 and since the trust came into existence before commencement of the IT Act, 1961, it would not be covered under section 13(1)(b). However, CIT alleged that the trust was registered only on 29-11-2019 on the basis of registration certificate issued by ACIT. Held: On perusal of registration certificate dated 24-11-2014 issued by ACIT, it was found that the original date of registration of the trust was 3-3-1962, which was appearing at the top of the left hand side of the said certificate. The said certificate further clarified that as per Circular No. G.K./18/2014/B.P.T./1096/25/E of Gujarat Government Officer Order, dated 11-6-2014, new registration certificate was issued. Thus, the trust was originally registered on 3-3-1962, and not on 24-11-2014. In fact, the Income Tax Act, 1961 came into force with effect from 1-4-1962; hence the trust was already in existence before the Act came into force. Further, even if the objects of the trust were restricted to a mere class or a community, however, the trust being created for educational benefit and for providing assistance to children, the same could not be denied registration under section 12AA. Accordingly, CIT was directed to grant registration under section 12AA to the assessee.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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