Abhyudaya Sewa Foundation Vs CIT (ITAT Bangalore)
Check Objects, Verify Genuineness – Leave the rest to AO – CIT(E) must see What you Aim & What you Do – Not How Much You Spend; CIT(E) cannot Step into AO’s Shoes- Meagre Spending Not a Ground to Deny 12AA & 80G – Section 8 Company Secures Approval: ITAT Bangalore:
Assessee, incorporated on 26.11.2023 as a Sec 8 company, was established with objects directed towards relief to the poor, promotion of education, skill development, & environmental sustainability. It had obtained provisional registration in Form 10AC on 31.03.2024. Subsequently, on 30.09.2024, it applied for permanent registration u/s 12AA & recognition u/s 80G.
Tribunal observed that CIT(E) has not at all disputed the factum that the objects of Assessee, which is a section 8 company are charitable in nature. CIT(E) has merely rejected the application on the ground that Assessee has spent a meagre amount towards the charitable activities. Tribunal ruled that at the time of grant of registration u/s. 12AA & 80G two things are to be examined by the CIT(E) i.e.
a) Whether activities of the assessee are genuine
b) Whether the objects of the trust are charitable in nature.
It is settled position of law that at the time of grant of registration the CIT(E) cannot step into the shoes of assessing officer & examine the benefits of sec 11 & 13, which are to be scrutinized by the assessing officer at later stage.
