2012 (11) TMI 1277 - AT - Income Tax

Summary

Issues Involved: Denial of registration sought u/s 12AA of the Income-tax Act, 1961 to the assessee Trust based on religious nature and activities.

Summary:
The appeal was filed by the assessee Trust after being denied registration under Section 12AA of the Income-tax Act, 1961. The Trust, constituted by a deed dated 25.2.2008, applied for registration mentioning its nature as religious, charitable, and non-profitable. The Director of Income Tax (Exemptions) (DIT(E)) denied registration stating that a Trust with religious objects and activities was not eligible for registration u/s 12AA. The assessee contended that registration was available for both public religious and charitable Trusts. The DIT(E) and the assessee presented their arguments before the Appellate Tribunal.

Upon examination, the Tribunal noted Section 11(1)(a) of the Act which exempts income derived from property held for charitable or religious purposes from total income. The Tribunal observed that even if the Trust was solely religious, it would still be entitled to registration u/s 12AA. Referring to a High Court case, it was established that registration is available even if the Trust's objectives combine both charity and religion. The Tribunal found no evidence that the Trust was not genuine or its activities were not authentic. Consequently, the Tribunal quashed the DIT(E)'s order and directed the grant of registration to the assessee Trust u/s 12AA.

In conclusion, the appeal filed by the assessee Trust was allowed, and the order was pronounced in Chennai on the 7th of November.