Elshaddai Prayer House Secunderabad v. CIT

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The Tax Publishers2016 TaxPub(DT) 2131 (Hyd-Trib) Elshaddai Prayer House Secunderabad v. CIT INCOME TAX ACT, 1961 --Charitable trust--Registration under section 12AAExamination of application of income for charitable or religious activities at registration stage--Validity--At the stage of granting of approval it is not required to see whether the application is for charitable or religious activities. Therefore, CIT(E) was not justified in rejecting the application filed by assessee for registration under section 12AA on the ground that objects of assessee were to carry on all kinds of religious and charitable work.--Assessee trust applied for registration under section 12AA for exemption along with Form 10A. The CIT(E) after going through the objects held that the objects were to 'carry on all kinds of religious and charitable work', thus, rejected the application. *Held:* At the stage of granting of approval, AO is not required to see whether the application is for charitable or religious activities. The requirement of registration is prima facie the application with due documents and the confirmation of objects being religious and charitable without investigation or check on the application factually in addition to the audited accounts if an existing trust. Income Tax Act, 1961, Section 12AA *REFERRED :* New Life in Christ Evangelistic Association v. CIT & Anr. (246 ITR 532) (Mad), Fifth Generation Education Society v. CIT 186 ITR 634 (All) FAVOUR : In assessee's favour A.Y. : 2015-16 IN THE ITAT, HYDERABAD 'B' BENCH P. MADHAVI DEVI, J.M. & B. RAMAKOTAIAH, A.M. Elshaddai Prayer House Secunderabad v. CIT ITA No.647 of 2015 A.Y. 2015-16 7 April, 2016 Assessee by: A.V. Raghuram Revenue by: K. Mythili Rani, CIT (DR) ORDER *P. Madhavi Devi, J.M.* This is assessee's appeal for assessment year 2015-16 against the rejection of the assessee's application for registration under section 12AA of the Income Tax Act. 2. Brief facts of the case are that the assessee trust filed an application in Form No. 10A on 16-10-2014seeking registration under section 12AA of the Income Tax Act, vide letter dated 28-11-2014. The CIT (Exemptions) issued a questionnaire to the assessee requiring the assessee to produce its original trust deed for verification and also to furnish detailed information on specific points raised therein. In response, assessee furnished the required details. On perusal of the same, the CIT (Exemptions) observed that the actual objects in the case of the assessee are not known as they merely mention 'carrying on all kinds of religious and charitable work'. Therefore, in the absence of specific objects of 'religious and charitable activities' to be carried on by the assessee, the CIT (E) rejected the assessee's application for registration under section 12AA of the Act, against which, the assessee is in appeal before us. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2016 TaxPub(DT) 2131 (Hyd-Trib)

Elshaddai Prayer House Secunderabad v. CIT

INCOME TAX ACT, 1961

--Charitable trust--Registration under section 12AAExamination of application of income for charitable or religious activities at registration stage--Validity--At the stage of granting of approval it is not required to see whether the application is for charitable or religious activities. Therefore, CIT(E) was not justified in rejecting the application filed by assessee for registration under section 12AA on the ground that objects of assessee were to carry on all kinds of religious and charitable work.--Assessee trust applied for registration under section 12AA for exemption along with Form 10A. The CIT(E) after going through the objects held that the objects were to 'carry on all kinds of religious and charitable work', thus, rejected the application. Held: At the stage of granting of approval, AO is not required to see whether the application is for charitable or religious activities. The requirement of registration is prima facie the application with due documents and the confirmation of objects being religious and charitable without investigation or check on the application factually in addition to the audited accounts if an existing trust.

Income Tax Act, 1961, Section 12AA

REFERRED : New Life in Christ Evangelistic Association v. CIT & Anr. (246 ITR 532) (Mad), Fifth Generation Education Society v. CIT 186 ITR 634 (All)

FAVOUR : In assessee's favour

A.Y. : 2015-16

IN THE ITAT, HYDERABAD 'B' BENCH

P. MADHAVI DEVI, J.M. & B. RAMAKOTAIAH, A.M.

Elshaddai Prayer House Secunderabad v. CIT

ITA No.647 of 2015

A.Y. 2015-16

7 April, 2016

Assessee by: A.V. Raghuram

Revenue by: K. Mythili Rani, CIT (DR)

ORDER

P. Madhavi Devi, J.M.

This is assessee's appeal for assessment year 2015-16 against the rejection of the assessee's application for registration under section 12AA of the Income Tax Act.

2. Brief facts of the case are that the assessee trust filed an application in Form No. 10A on 16-10-2014seeking registration under section 12AA of the Income Tax Act, vide letter dated 28-11-2014. The CIT (Exemptions) issued a questionnaire to the assessee requiring the assessee to produce its original trust deed for verification and also to furnish detailed information on specific points raised therein. In response, assessee furnished the required details. On perusal of the same, the CIT (Exemptions) observed that the actual objects in the case of the assessee are not known as they merely mention 'carrying on all kinds of religious and charitable work'. Therefore, in the absence of specific objects of 'religious and charitable activities' to be carried on by the assessee, the CIT (E) rejected the assessee's application for registration under section 12AA of the Act, against which, the assessee is in appeal before us.