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Issues involved: Refusal of registration u/s. 12AA and approval u/s. 80G(5)(vi) by DIT(E) based on lack of charitable activities, global operations, and absence of maintained accounts.
Registration u/s. 12AA: The DIT(E) refused registration due to perceived lack of tangible charitable activities, global operations, and absence of maintained accounts. The Tribunal emphasized the need for the DIT(E) to verify the genuineness of the trust's activities and compliance with section 2(15) provisions. Relying on relevant case laws, the Tribunal directed the DIT(E) to reconsider the application in light of these decisions. Approval u/s. 80G(5)(vi): The Tribunal outlined the conditions for approval under section 80G(5), including income non-inclusion, charitable purpose limitation, regular accounts maintenance, and specific institution types. It highlighted the requirement for Commissioner approval based on Rule 11AA and Form No.10G submission. The Tribunal found that the trust met the conditions specified in sub-clauses (i) to (v) of section 80G(5) and directed the DIT(E) to review the application and make a decision in accordance with the law. Denial Justification: The DIT(E) denied approval under section 80G solely based on the trust's global operations clause. The Tribunal stressed that approval should be based on satisfaction of conditions in section 80G(5)(i) to (v). If the trust meets these conditions, there should be no reason for denial. Consequently, the Tribunal instructed the DIT(E) to reassess the application and make a decision in compliance with the law. Conclusion: The Tribunal found the reasons for denial of registration u/s. 12AA and approval u/s. 80G(5)(vi) by DIT(E) unjustified. Therefore, the entire issue was remitted back to the DIT(E) for reconsideration and fresh decision. The appeals of the assessee were allowed for statistical purposes.
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