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2016 (11) TMI 330 - AT - Income TaxGrant of registration u/s.12AA denied - Held that - The question whether activities of the trust are minimum or not is not a relevant criteria for grant of registration. Since, no other reasons have been given for not granting registration to the Assessee, we are of the view that the Assessee is entitled to grant of registration. If the objects of the trust have objects which are charitable in nature and if there is no material to suggest that the activities of the trust are not genuine, then that would be sufficient to allow registration subject to fulfillment of other conditions for grant of registration. We are therefore of the view that the Assessee is entitled to grant of registration u/s.12AA of the Act. Grant of recognition u/s.80G (5) was denied because of absence of registration u/s12AA of the Act. Since registration u/s12AA of the Act is being allowed, we are of the view that the Assessee should be granted approval u/s.80G (5) - Decided in favour of assessee
Issues:
1. Appeal against rejection of registration u/s.12AA of the Income-tax Act 1961. 2. Appeal against denial of recognition u/s.80G (5) (vi) of the Income-tax Act 1961. Analysis: 1. The appellant, a trust formed by a deed dated 22.12.2014, applied for registration u/s.12AA of the Income Tax Act, 1961, before the CIT (Exemption), Kolkata. The application was rejected on 28/10/2015, citing insufficient activities to justify registration. The appellant contested this rejection, arguing that the CIT(E) did not provide a valid reason for denial. The ITAT Kolkata noted that the CIT(E) expected more activities from the trust, but this criterion is not relevant for registration under Sec.12AA. Since the trust's objects were charitable and its activities genuine, the ITAT held that the appellant was entitled to registration u/s.12AA, directing the same. 2. Additionally, the denial of recognition u/s.80G (5) (vi) was based on the absence of registration u/s.12AA. Given the grant of registration u/s.12AA, the ITAT ruled that the appellant should also be approved u/s.80G (5) of the Act. Consequently, both appeals were allowed, and the orders were pronounced on 19.10.2016.
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