INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Application for registration under section 12AA rejected - CIT(E) had not dealt with examination of objects of assessee Trust/Institution - Remand of matter

Assessee was to be engaged in religious activities such as running and maintaining a temple and made an application for approval of the Trust/Institution under section 12AA. A letter was issued through ITBA portal to assessee asking him to upload certain other information/clarification in order to process the said application. Assessee submitted its compliance on ITBA portal in response to the said notice. It was noticed that assessee had previously applied for registration under section 12AA and the same was rejected. Assessee trust had not filed return of income for three assessment years and it was entitled to claim exemption from corpus donation as per the provision of section 11(1) (d). CIT(E) rejected the application for registration under section 12AA of the assessee Trust/ Institution. Held: CIT(E) had analyzed legal periphery of exemption under section 11 and registration under section 12AA. He had not brought on record the examination of Memorandum of Articles of assessee-Trust/ Institution. CIT(Exemptions) in his entire order had not dealt with the examination of the objects of assessee Trust/Institution and had also not given specific findings on the genuineness of the activities carried on by the Trust vis-à-vis facts as well as documents on records. Since assessee had not furnished the requisite details as called for by CIT(E), therefore, matter was remanded back to CIT(E) to re-adjudicate the matter following the principles of natural justice.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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