ITAT: Genuineness of Activities, Not Commercial Nature, to be seen while granting registration u/s 12AA and 80G

Rasha Welfare Foundation Vs CIT (Exemption) (ITAT Delhi)

Summary

The issue under the case as to whether the Foundation’s activity—assigning electric vehicles to beneficiaries under a CSR initiative was commercial activity or a charitable activity. The tribunal concluded that the dominant object was charitable. It was not profit-driven. It emphasized that incidental income, when reinvested in charitable projects, does not invalidate the charitable status. The tribunal ordered that registration be granted.

1. Facts of the Case

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