ITAT Chennai grants registration to trust with charitable objects

The Appellate Tribunal ITAT Chennai allowed the appeals of an assessee-trust against the rejection of registration under section 12AA and approval under section 80G(5) of the Income-tax Act, 1961. Despite the trust not commencing activities, the Tribunal held that the trust's charitable objects were sufficient for registration. The Tribunal directed the ld. CIT to grant registration and approval to the assessee-trust, emphasizing that the trust's objects were deemed charitable.

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Issues involved: Rejection of registration u/s 12AA and approval u/s 80G(5) of the Income-tax Act, 1961 for an assessee-trust.

Summary:
The Appellate Tribunal ITAT Chennai heard appeals against orders rejecting the applications for registration u/s 12AA and approval u/s 80G(5) of the Income-tax Act, 1961. The assessee-trust, created by a trust deed, applied for registration u/s 12AA on 9.6.2009. The ld. CIT conducted an enquiry and found the trust's objects to be charitable, despite the trust not commencing activities. The ld. CIT rejected the registration application citing inability to ascertain genuineness due to non-commencement of activities. The Tribunal held that the trust's charitable objects should suffice for registration, even if activities had not begun. It directed the ld. CIT to grant registration u/s 12AA and approval u/s 80G(5) to the assessee-trust, as the trust's objects were deemed charitable. Both appeals of the assessee were allowed by the Tribunal.

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