Charity ≠ Commerce – ITAT Grants U/s 12AB Registration to Trust Despite Sales Activity

Gramonnati Trust Vs CIT (Exemptions) (ITAT Chennai) The assessee trust’s application for registration u/s 12AB was rejected by the CIT(E) on the ground that its activities (procurement, processing, and sale of agricultural produce) were commercial in nature and hit by section 2(15). Before the Tribunal, it was demonstrated that the trust was engaged in rehabilitation of economically weaker sections (including widows and distressed persons) and environmental preservation by processing rejected agricultural produce through solar dehydration. The proceeds were fully reinvested into the project ...