INCOME TAX ACT, 1961

Section 2(15)

Charitable trust - Charitable purpose - Whether objects of trust registered under section 12A can be revisited -

Issue arose for consideration was whether Tribunal was justified in confirming the order of CIT(A) allowing exemption under section 11, when actually the assessee trust was not carrying on educational activities as contemplated under section 2(15). Held: In view of the decision in Asstt. CIT v. Surat City Gymkhana (2008) 300 ITR 214 (SC): 2008 TaxPub(DT) 1745 (SC), once registration is granted to a trust under section 12A, then it is not open to the AO while examining compliance with section 11 to revisit objects of assessee and to take a view contrary to the view taken while granting registration. Thus, the nature of activity in terms of section 2(15) was not verified nor considered by the Tribunal and as said question did not arise out of the order of Tribunal, the court did not entertain it.

Followed:Asstt. CIT v. Surat City Gymkhana (2008) 300 ITR 214 (SC): 2008 TaxPub(DT) 1745 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2008-09

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