The appellant Trust's application for registration u/s 12A was ...

Trust denied tax exemption due to questionable fund transfers, charitable purpose doubted.

Case Laws Income Tax

September 20, 2024

The appellant Trust's application for registration u/s 12A was rejected by the Commissioner of Income Tax (Exemptions) on the grounds that its activities were not aligned with the objects mentioned in its Memorandum of Association, and the genuineness of its activities could not be conclusively proven. The Trust was directed to provide desired details to establish the charitable nature of its objectives and the genuineness of its activities as per the Memorandum of Association. The Commissioner of Income Tax (Exemptions) observed that the Trust's source of funds involved a transfer entry on the same day, which was transferred back in the same manner to the same party, raising concerns about the genuineness of its activities for charitable purposes. In the interest of natural justice, the Income Tax Appellate Tribunal set aside the Commissioner of Income Tax (Exemptions)'s order and remanded the matter back, directing the Commissioner to pass a de novo order after providing a reasonable opportunity to the assessee to prove its claim. The appeal was allowed for statistical purposes.

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The appellant Trust's application for registration u/s 12A was ...

Trust denied tax exemption due to questionable fund transfers, charitable purpose doubted.

Case Laws Income Tax

September 20, 2024

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