INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - Rejection of application for registration on ground of no activity carried out by assessee -

Assessee-society having object to poineer, cultivate and encourage activities in educational, social cultural and recreational fields and to promote fine arts, etc., filed application of registration under section 12AA. CIT(E) rejected assessee's application on the ground that since no activities had been undertaken by society, it was not possible to register it presumably because it was not possible to form satisfaction as to whether activities of society were genuine. Held: CIT(E) unnecessarily enlarged the scope of mandate to be exercised by him at the time of grant of registration under section 12AA. He had gone into an altogether different consideration for grant of registration, whereas he was only to consider whether objects of assessee were genuine or not. Accordingly, there was no valid reason for refusal to grant of registration under section 12AA when CIT(E) had not recorded any adverse finding that objects of society were not charitable or were non-genuine and reasoning of CIT(E) that since no activities were carried out, registration could not be granted, did not hold good.

Followed:Ananda Social & Educational Trust v. CIT vide Order, dated 19-2-2020 reported in (2020) 114 taxmann.com 693 (SC) : 2020 TaxPub(DT) 1340 (SC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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