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| The Tax Publishers2020 TaxPub(DT) 3593 (Ind-Trib) : (2020) 185 ITD 0340 INCOME TAX ACT, 1961
Section 12AA
At the stage of consideration of issue of registration under section 12AA, it is not a sine qua non to examine the aspect of application of income, accordingly, CIT(E) was not justified to deny registration on the ground that income/funds of assessee-society had been diverted for benefit of interested parties.
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Charitable trust - Registration under section 12AA - Denial on ground that income/funds of society had been diverted for benefit of interested parties -
Assessee-society sought for registration under section 12AA. CIT(E) rejected assessee's application on the ground that income/funds of society had been diverted for benefit of interested parties, i.e., the members and not for charitable activities for public at large and proviso to section 13(1)(c) got attracted. Held: At the stage of consideration of issue of registration under section 12AA, it is not a sine qua non to examine the aspect of application of income. Until registration is granted, question of application of fund does not arise at all and issue of payments could be examined by AO while making assessment. Accordingly, application seeking registration under section 12AA was restored to CIT(E).
Followed:Modern Defence Shikshan Sansthan. v. CIT (2008) 26 SOT 21 (Jodhpur) : 2007 TaxPub(DT) 0996 (Jod-Trib)
REFERRED :
FAVOUR : Matter remanded
A.Y. :
IN THE ITAT, INDORE BENCH
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