2011 (6) TMI 765 - AT - Income Tax

Summary

Issues involved: Registration u/s 12AA of the Income-tax Act denied due to doubt on genuineness of trust and lack of documentary evidence for charitable activities.

Summary:
The appeal was filed by the assessee-trust against the order rejecting the registration u/s 12AA of the Act by the ld. CIT-I, Madurai. The ld. CIT doubted the genuineness of the trust due to the inclusion of religious activities alongside charitable activities without proper documentary evidence. The grounds raised in the appeal included misinterpretation of section 2(15) of the Act, failure to consider produced details, and disregarding relevant assurances and circulars. The trust's objects were found to be both charitable and religious, which was deemed permissible for registration u/s 12AA. Consequently, the ITAT Chennai directed the ld. CIT to grant registration u/s 12AA to the assessee-trust, allowing the appeal.

The ld. CIT's refusal to grant registration u/s 12AA was based on doubts regarding the genuineness of the trust due to the inclusion of religious activities alongside charitable activities without sufficient documentary evidence. The appeal raised concerns over misinterpretation of statutory provisions, failure to consider produced details, and disregard of relevant assurances and circulars. The trust's objects were found to be both charitable and religious, which was considered acceptable for registration u/s 12AA. Consequently, the ITAT Chennai directed the ld. CIT to grant registration u/s 12AA to the assessee-trust, allowing the appeal.