INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - Allegation that activities of trust were not genuine - At the time of granting registration CIT(E) only required to examine true nature of the objects of trust, i.e., whether charitable in nature or not

Issue was as regards grant of registration under section 12AA. CIT(E) called for certain information in order to satisfy himself, that activities of trust were genuine or not. Assessee trust failed to comply with said notice. Held: Perusal of order implied that it was not clear as to whether CIT(E) granted reasonable opportunity of being heard since order mentioned only one date of hearing notice. In case of Ananda Social and Educational Trust, it was held that even in absence of any activities, a trust can be considered for registration under section 12AA and term 'activities' contemplated under section 12AA includes 'proposed activities'. At time of grant of registration, only issue to be examined by CIT(E) is regarding true nature of the objects of trust, i.e., whether charitable in nature or not. Matter was remanded to CIT(E) to re-examine issue of grant of registration under section 12AA.

Followed:Ananda Social & Educational Trust v. CIT & Anr. (2020) 272 Taxman 7 (SC) : 2020 TaxPub(DT) 1340 (SC)

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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