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Issues involved: Rejection of application for registration u/s 12A of the Income Tax Act.
Summary: The only issue raised in the present appeal is against the rejection of application for the grant of registration u/s 12A of the Income Tax Act. The assessee trust was created in 2002 and applied for registration in 2008. The CIT rejected the application citing various objections, including a vague dissolution clause, lack of evidence of charitable activities, and alleged profit-making motives. The applicant appealed against the CIT's decision. The applicant argued that the Supplementary deed clarified the dissolution clause, all required documents were submitted, collaboration with M/s Fountainhead was for genuine charitable purposes, and books and toys were purchased for distribution to poor students. The applicant also cited legal precedents supporting their case. After considering the submissions, the Tribunal found that the trust's activities, including purchasing land and constructing a school, were for charitable purposes. The Tribunal disagreed with the CIT's objections and allowed the appeal, remitting the issue back to the CIT for re-consideration in line with legal precedents. The Tribunal emphasized that assessing the quantum of activities is the Assessing Officer's domain, not the CIT's when granting registration u/s 12A. The appeal was allowed for statistical purposes. In conclusion, the Tribunal ruled in favor of the applicant, allowing the appeal against the rejection of registration u/s 12A of the Income Tax Act.
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