9911796707
TMI Blog2025 (1) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... w:- "Whether on facts & circumstances of the case, ITAT is correct in directing to CIT(E) to grant registration u/s 12AA of the Act irrespective of the findings by the CIT (E) that the activities of the trust is in the nature of trade, commerce or business and covered by proviso to Section 2 (15) of the Act." 2. The respondent herein / assessee had filed an application on 4-7-2018 for grant of registration under Section 12AA of the IT Act in Form No. 10A, as the assessee Society was registered with the Deputy Registrar of Societies on 30-6-2017 under the Chhattisgarh Society Registration Act, 1973 and the main area of activities claimed to be conducted by the Society are, to implement the Chhattisgarh Innovation & Entrepreneurship Polic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charitable purpose, as such, registration should not have been directed under Section 12AA of the IT Act. 4. Mr. Shobhit Mishra, learned counsel appearing for the respondent herein / assessee Society, would submit that the learned ITAT is absolutely justified in allowing the appeal of the assessee and directing for registration under Section 12AA of the IT Act. 5. We have heard learned counsel for the parties and considered their rival submissions made herein-above and also went through the material available on record minutely and thoroughly as well. 6. Section 12AA (1) (b) (i) of the IT Act states as under: - "12AA. Procedure for registration.-(1) The Principal Commissioner or Commissioner, on receipt of an application for registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d observed in paragraphs 10, 11, 12 and 13 as under: - "10. The provision contained under Section 12A nowhere empowers the CIT to assess the objects vis-a-vis the books of accounts. Even otherwise, it is not to be seen at this stage as to whether the fulfillment of the charitable trust would eventually benefit the members of the society. If the constituent of the trust engage in some genuine charitable activity which may benefit them in some other aspect of their personality which may include their vocation in life, it would not affect the genuineness of the objects of the trust. A person does not engage in charity for not doing anything in the other walks of life. A charity for one particular object is not for destroying the career for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby dismissed." 9. A careful perusal of the order impugned would show that the learned ITAT has clearly recorded a finding in paragraph 12 that the activity of respondent / assessee Society is charitable in nature, and recorded the following finding: - "12. On careful consideration of the material placed before us by the assessee, we are of the considered view that the reasons placed by CIT(E) while rejecting approval u/s. 12AA of the Act are not sufficient to deny the recognition considering the facts on record. The assessee is Special Purpose Vehicle (SPV) and runs from the grants and support of the state government. Except the points observed by him on all the other sphere the assessee trust is fulfilling all the conditions for r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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