2011 (1) TMI 1540 - AT - Income Tax

Summary

Issues involved: Appeal against refusal of registration u/s 12AA and recognition u/s 80G of the Income Tax Act, 1961.

Registration u/s 12AA: The Director of Income-tax (Exemptions) declined to grant registration u/s 12AA to the assessee due to the general nature of the objects declared in the Memorandum of Association. The Tribunal found that the objects were charitable in nature, aimed at uplifting differentially disabled persons through vocational training. The objection raised against a specific clause in the Articles of Association was deemed far-fetched by the Tribunal, as the expression "Otherwise" did not defeat the charitable objects of the assessee. It was held that if the assessee goes beyond its objects, the Revenue can examine it during assessment proceedings. Consequently, the Tribunal held that the assessee was entitled to the benefits u/s 12AA of the Income Tax Act.

Recognition u/s 80G: The other appeal was against the refusal of granting recognition u/s 80G of the Income Tax Act. After considering the arguments and documents presented, the Tribunal concluded that the assessee was eligible for the benefits under section 80G. The Director of Income-tax (Exemptions) was directed to issue orders accordingly. As a result, both appeals filed by the assessee were allowed by the Tribunal.