INCOME TAX ACT, 1961

Section 12AA

Charitable Trust - Registration under section 12AA rejected - Allegation that requirement under section 12AA was not complied by assessee -

Assessee made an online application for approval of the Trust/Institution under section 12AA under the category of charitable trust/institution as per the CBDT Notification No. S.O.2033(E). Application was carefully perused and considered along with its annexures. Thereafter, a letter was issued through ITBA portal to assessee pleading to upload certain other information and clarification in order to process the application. Assessee claimed to have been engaged in educational activities and charging fees to the students. Assessee being engaged in education activities, verification of admissions given to the students from financially weaker sections of the society/RTE category students was most relevant but in absence of relevant details, satisfaction about the compliance of the requirements of section 12AA(1)(a)(ii) by assessee could not be arrived at by CIT(E). Therefore, application for grant of registration was rejected by CIT(E). Held: It was already decided and observed as on the facts and circumstances pertaining to registration under section 12AA in foregoing paragraphs regarding assessee. The matter was restored to the file of CIT(E). Therefore, considering the substantive parameters of justice and for the fact that condition laid down in section 80G(5) read with rule 11AA had to be satisfied for recognition under section 80G(5)(vi), the matter was also restored to CIT(E) to take it to logical end while complying with the principles of natural justice.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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