Case Law Details
Rajiv Gandhi Proudyogiki Vishwavidyalaya Vs CIT (Exemption) (ITAT Indore)
Conclusion: Since objects of assessee were duly charitable in nature and there was no dispute as to genuineness of its activities, therefore, no registration could be denied under section 12AA merely on the basis that assessee was not carrying out activities for charitable purposes.
Held:
CIT denied assessee’s application for registration on the basis that activity of assessee could not be termed as charitable as it had been systematic generating surplus from year to year and the amount had not been applied for its objectives. It was held merely because assessee was generating surplus could not be the basis for inferring that assessee was not carrying out activities for charitable purposes. At the stage of granting registration under section 12AA, CIT was not required to examine application of income. All that he might examine was whether application was made in accordance with the requirements of section 12A read with rule 17A and whether Form No. 10A has been properly filled up. He had also to examine whether objects of the trust were charitable or not. The stage of application of income was when such trust or institution files return. Since objects of assessee were duly charitable in nature and there was no dispute as to genuineness of its activities, therefore, no registration could be denied under section 12AA.
FULL TEXT OF THE ITAT JUDGEMENT
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