9911796707
|
Home
Issues involved: Rejection of applications for approval u/s 12A and 80G of the Act by the CIT-Hyderabad.
Summary: The appeal was filed by the assessee against the CIT-Hyderabad's order rejecting the applications for approval u/s 12A and 80G of the Act. The rejection was based on the assessee's inability to produce books of account and information requested by the Director of Income Tax, despite explaining that the trust's activities had not yet commenced. The Tribunal emphasized that if the trust's objects are charitable in nature, registration cannot be denied simply because charitable activities have not started. The law dictates that during the registration process, the focus should be on whether the trust's objects are charitable, not on the actual charitable activities being carried out at the commencement stage. As long as the trust's objects are genuinely charitable, registration should not be refused. The Tribunal found no justification for the DIT's action in denying registration to the assessee trust and directed the DIT to reexamine the case and make a decision in accordance with the law. It was clarified that the commencement of business by the Trust is not a prerequisite for approval u/s 12A and 80G of the Act. The only requirement is for the Director, IT (Exemptions) to be satisfied with the genuineness of the activities conducted by the assessee. Therefore, the Tribunal set aside the issue and directed the assessee to demonstrate the genuineness of its activities in relation to the trust's objects. Ultimately, the appeal of the assessee was allowed for statistical purposes, and the order was pronounced in the open court on 26.3.2010.
|
