2010 (4) TMI 908 - AT - Income Tax

Summary

Issues involved: Rejection of registration under sections 12AA and 80G of the Income-tax Act, 1961.

Section 12AA Registration Issue: The assessee's grievance was that the Commissioner of Income-tax rejected its applications for registration under section 12AA and 80G. The Commissioner had concerns about the trustees' qualifications and the genuineness of the trust's activities. The assessee argued that the trust's objectives were charitable and entitled to registration. The Tribunal noted that the Commissioner exceeded his mandate by delving into trustee credentials instead of focusing on the genuineness of the trust's activities, as required by section 12AA. Citing the decision of the Madras High Court, the Tribunal emphasized that the Commissioner's inquiry should have been limited to verifying the trust's activities' genuineness. Consequently, the matter was remitted back to the Commissioner to reassess the registration issue solely based on the genuineness of the trust's activities.

Section 80G Registration Issue: As the section 12AA registration issue was remitted back to the Commissioner, the matter of registration under section 80G was also sent back for reconsideration. The Tribunal directed the Commissioner to focus on the genuineness of the trust's activities while deciding on the registration under section 80G. Ultimately, the appeals of the assessee were allowed for statistical purposes, and the orders were pronounced in April 2010.