Case Law Details
CIT (Exemptions) Vs. Lord Krishna Charitable Trust (Punjab and Haryana High Court)
Section 12AA prescribes the scope and ambit of the enquiry that the CIT is authorized to carry out at the time of grant of registration to a trust or institution. The scope of the enquiry revolves around the nature of the objects and the genuineness of the activities of the trust. Since AO while passing the scrutiny assessment under section 143(3), had accepted the income of the assessee at ‘nil’ as returned by the assessee, it could not be said that the income derived by the trust by way of fees from the students were applied by the assessee for the purpose, other than the aims and objects of the trust. Thus, the Tribunal was justified in directing the CIT to grant registration to the assessee.
FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:-
This appeal has been preferred by the Revenue under section 260A of the Income Tax Act, 1961 (in short “the Act”) against the order dated 6-7-2016 (annexure A2) passed by the Income Tax Appellate Tribunal, Delhi Bench “D”, New Delhi (hereinafter referred to as “the Tribunal”) in ITA No. 6799/Del/2013, claiming the following substantial questions of law :–
I. Whether on the facts and in the circumstances of the case, the order of the Income Tax Appellate Tribunal is not perverse in holding the assessee eligible for registration and in directing the Commissioner to grant registration whereas in the rejection order the Commissioner had established that the assessee’s activities were not genuine ?
Please become a Premium member. If you are already a Premium member, login here to access the full content.
