2015 (9) TMI 387 - HC - Income Tax

Registration under Section 12A denied - non commencement of activities and therefore, failed to satisfy the conditions laid down in Section 12AA(1)(b) - Tribunal held that the assessee trust must be granted registration under Section 12A and recognition under Section 80G - Held that - The question involved in these appeals is squarely covered by the judgment of this Court rendered in the case of Director of Income Tax (Exemptions) Vs. Meenakshi Amma Endowment Trust (2010 (11) TMI 853 - KARNATAKA HIGH COURT) wherein held where the trust has approached the authority for registration under section 12A within a span of eight months of its formation, the criteria, namely, the objects of the trust for which it was formed will have to be examined to be satisfied about its genuineness and the activities of the trust cannot be the criterion, since it is yet to commence its activities - Decided in favour of assessee.

Summary

The Karnataka High Court dismissed the appeals regarding the registration of a trust under Section 12A and recognition under Section 80G of the Income Tax Act. The court found that the trust did not satisfy the conditions laid down in Section 12AA(1)(b) as it had not commenced activities. The decision was based on a previous judgment of the court in a similar case.