2012 (9) TMI 1019 - AT - Income Tax

Summary

Issues involved:
The appeal concerns the refusal of registration u/s. 12A of the Income-tax Act, 1961 by the Director of Income-tax (Exemptions) [DIT(E)], Hyderabad.

Issue 1: Refusal of registration u/s. 12A

The appellant sought registration u/s. 12A of the Act, but it was denied by the DIT(E) citing non-commencement of operations and unverifiable payments. The appellant contested this decision, arguing that commencement of activities is not a prerequisite for registration u/s. 12A, citing relevant case law. The appellant maintained that the trust meets the requirements for registration, referring to additional case law and Tribunal decisions supporting their position.

Key details for Issue 1:
- The appellant's application for registration u/s. 12A was rejected due to alleged non-commencement of operations and unverifiable payments.
- The appellant argued that commencement of activities is not a mandatory condition for registration u/s. 12A, supported by legal precedents.
- The appellant claimed that the trust fulfills the necessary criteria for registration, citing relevant case law and Tribunal decisions in their favor.
- The Tribunal remitted the issue back to the DIT(E) for reconsideration in light of the presented arguments and legal decisions, directing a decision in accordance with the law.
- The appeal of the assessee was allowed for statistical purposes.

This summary provides a detailed overview of the issues involved in the legal judgment regarding the refusal of registration u/s. 12A of the Income-tax Act, 1961.