Case Law Details
At the outset, it is required to be noted that the revenue has not doubted and/or disputed the object and purpose of the assessee- trust/foundation so mentioned in the Memorandum of Association and Article of Association of the foundation. It appears that the main object of the foundation seems to be to promote, establish, develop, run, support, maintain and advance the cause of education,to grant aid or other assistance to all types of educational institutions including Schools, Colleges, Universities, libraries, reading rooms, formal and non formal educations, vocational training centers and other institutions for the benefit of the students. It is also required to be noted at this stage that it was the first year after the assessee- trust/foundation came to be established. Under the circumstances and considering the object and purpose of the trust narrated herein above, it cannot be said that the ITAT has committed any error and/or illegality in allowing the appeal directing to grant the registration under Section 12A of the Income Tax Act to the assessee trust/foundation.
While passing the impugned order, the tribunal in paragraph no. 5 has observed and held as under;
“Having heard both sides, we have carefully gone through the orders of the authorities below. It is pertinent to note that as per Memorandum of Association and Articles of Association, the foundation is registered under Section 25 of the Companies Act under registration certificate dated 06/06/2012. The total donation received by the assessee- trust is only Rs. 7103/-. The total amount given as donation/scholarship to girl students is about Rs. 4000/-. Looking to the magnitude of the income in the previous year relevant to assessment year under appeal, the charitable activities carried out cannot be called as low magnitude. Considering the totality of the facts and circumstances of the case, we are of the view that the learned CIT refusing registration under Section 12AA of the I.T. Act. 1961 has observed irrelevant considerations. We therefore, direct him to grant the registration to the foundation under Section 12AA of the I.T. Act, 1961.”
HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL NO. 907 of 2013
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