INCOME TAX ACT, 1961

Section 80G(5)

Deduction under chapter VI-A - Registration under section 80G(5) - Denial on allegation that assessee-trust was a private religious trust - Eligibility of

Assessee-trust had moved an application before CIT(E) for seeking registration under section 80G. Subsequently, notices were issued seeking information and documents from assessee-trust and considering the submissions so filed by the assessee-trust, CIT(E) held that the assessee-trust is a private religious trust and therefore, cannot be held as a charitable trust within the meaning of section 2(15). It was also held by CIT(E) that the assessee-trust had failed to furnish clarification/details as sought. Accordingly, application seeking registration under section 80G was rejected. During the course of hearing, assessee submitted that assessee-trust was duly registered under section 12AA. Held: Having granted registration under section 12AA which continued to remain in force and which was not withdrawn as on date, the main character of the assessee-trust as that of the public trust cannot be challenged in proceedings. Assessee trust had claimed that necessary information/documents have been submitted before the CIT(E), however, on perusal of the records, it was unable to decipher any information and documents which have been submitted by the assessee-trust in relation to Temple related activities and corresponding expenditure. Assessee-trust deserved one more opportunity to submit the necessary information/documents. Therefore, matter was remanded back to CIT(E) for the purposes of examining the activities of the assessee-trust including the activities in relation to Temple and decide the matter afresh.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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