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of <h1>Quashed denial of s.12A registration; s.12A needed before claiming s.11/s.12 benefits; matter remitted for re-examination.</h1> HC quashed the impugned order denying registration under s.12A of the IT Act, holding that registration under s.12A is a pre-condition for claiming ... Seeking registration under section 12A - Charitable Trust - HELD THAT:- A reading of the section shows that the registration under section 12A is a pre-condition for availing of the benefit under sections 11 and 12. Section 11 provides for exemption of income which is applied for charitable purposes. The application for registration under section 12A has to be made in Form No. 10A prescribed by rule 17A before the expiry of one year from the date of creation of the trust or the establishment of the institution, whichever is later. It has to be made by the person in receipt of the income of the trust. The order impugned does not say that the objects of the society are not charitable in nature ; it merely says that they are general in nature. Just because they are general, they do not cease to be charitable. The Commissioner has also observed that no activity has been carried on by the society. It is also not the requirement of section 12A of the Act. Nor has section 80G any relevance at this stage. The impugned order cannot, therefore, be sustained and it is quashed. Commissioner shall re-examine the issue in the light of the objects of the society and in the light of the observations made herein and pass fresh orders accordingly. Issues involved: Interpretation of registration requirements u/s 12A of the Income-tax Act, 1961 for charitable societies.Summary:The High Court of Allahabad heard a writ petition challenging an order by the Commissioner of Income-tax, Meerut, u/s 12A of the Income-tax Act, 1961. The petitioner, a charitable society, sought registration u/s 12A, a prerequisite for availing benefits under sections 11 and 12 which provide for income exemption for charitable purposes. The court noted that registration under section 12A is essential before claiming benefits under sections 11 and 12. The application for registration must be made in Form No. 10A as per rule 17A within one year from the trust's creation. The Commissioner's role is limited to verifying compliance with section 12A and rule 17A, and assessing the charitable nature of the trust's objects, not the application of income.The impugned order questioned the charitable nature of the society's objects, stating they were general, but did not declare them non-charitable. The Commissioner's observation of no activities by the society was deemed irrelevant at the registration stage. The court held that the order was unsustainable and quashed it, directing the Commissioner to reassess based on the society's objects and the court's observations. The writ petition was disposed of with these directions.
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