The Tax Publishers2021 TaxPub(DT) 0217 (Pune-Trib)

INCOME TAX ACT, 1961

Section 12AA

Where objects of the trust were not doubted by the Department and they have also not disputed the charitable nature of the activities conducted by the assessee trust, further, all the relevant records were submitted before the Revenue Authorities and they have verified the same and were satisfied on this aspect, since all the requirements of registration under section 12AA were satisfied by the assessee trust, registration could not be denied to assessee.

Charitable trust - Registration under section 12AA denied - AO held that activities of assessee trust were not charitable in nature -

Assessee trust was engaged in activities such as blood donation camp, felicitation of students, tree plantation, etc. CIT(E) observed that assessee had shown addition of certain sums under the head Building Fund” during the financial year 2016-17, 2017-18 and 2018-19 respectively directly credited to the respective reserve without routing it through the Income and Expenditure Account. Since assessee has not submitted any details of taxes paid on the said funds, it was found that it has claimed the same as exempt and assessee accordingly claimed exemption under section 11(1)(d) in the years before the year in which it has applied for grant of registration. CIT(E) rejected the application of assessee for grant of registration under section 12AA(1)(b)(ii). Held: Objects of the trust were not doubted by Department and they have also not disputed the charitable nature of the activities conducted by assessee-trust. In these two areas, there was no examination/verification conducted by CIT(E). Meaning thereby, all the relevant records were submitted before the Revenue Authorities and they have verified the same and were satisfied on this aspect. In case of CIT v. Manekji Mota Charitable Trust [(2019) 267 TAXMAN 0016 (Bombay) : 2019 TaxPub(DT) 6639 (Bom-HC)] it was held that at the time of the registration of trust under section12A, the question of application of income of the trust is premature.” When all the requirements of registration under section 12AA were satisfied by assessee trust, registration therein should be granted.

Followed:Ananda Social And Educational Trust v. CIT & Anr. (2020) 272 Taxman 7 (SC) : 2020 TaxPub(DT) 1340 (SC) CIT (Exemption) v. Manekji Mota Charitable Trust (2019) 267 TAXMAN 0016 (Bombay) : 2019 TaxPub(DT) 6639 (Bom-HC) Kai Mahadevrao Naykude v. CIT (Exemption) (2020) 208 TTJ (Pune) 296 : 2020 TaxPub(DT) 3828 (Pune-Trib).

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

IN THE ITAT, PUNE BENCH

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