INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - Assessee-society established and registered abroad and not in India -

Assessee-trust filed application under sections 12AA and 80G for grant of registration. CIT noted that the assessee had been established and also registered abroad under the Act 'The Religious Educational and Charitable Institution Act of 1861'. He noted that since the trust was registered in Australia and not in India, the same was not eligible for registration under section 12AA and consequently, approval under section 80G was also denied. Held: It was undisputed that assessee-society had been established and registered in abroad under the Religious Educational and Charitable Institution Act of 1861 in Australia and not in India. Further, the assessee was controlled by head office located abroad and thus, having regard to provisions of section 11(1) read with section 12AA read with rule 17A of Income Tax Rules, 1962, the assessee was not eligible for desired certificate of registration under section 12AA. Further, since the assessee was governed not by Indian Regulations and was subject to regulations under that of foreign Act in Australia, therefore, the CIT was justified in not granting certificate sought by the assessee under section 12AA and accordingly, the consequent approval under section 80G had also rightly been denied to the assessee.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

SUBSCRIBE FOR FULL CONTENT