2013 (2) TMI 926 - AT - Income Tax

Appeal granted for trust registration under Income Tax Act section 12AA. Trust's charitable activities upheld.

M/s. Alpha Educational Trust, M/s. Subbaraya Aiyar Padmanabhan & Ramamani Advocates Versus The Assistant Director of Income Tax

The appeal was filed against the rejection of registration under section 12AA of the Income Tax Act. The delay in filing the appeal was condoned, and it ... - Issues involved: Appeal against rejection of registration under section 12AA of the Income Tax Act, 1961.Summary:1. The appeal was filed against the order rejecting the application for registration under section 12AA. The delay in filing the appeal was condoned, and the appeal was admitted for hearing. 2. The assessee trust applied for registration under section 12AA, which was initially rejected due to missing documents. The subsequent application was rejected citing non-filing of income returns and amendment of trust objects. The AR argued that the trust's charitable activities since 1985 should qualify for registration, citing relevant case laws.3. The Revenue contended that the trust had not filed the object clause initially and later violated trust amendment provisions. They referred to a Tribunal order to support their stance.4. After reviewing submissions and trust deeds, it was found that the trust was originally formed for charitable activities. The subsequent amendment to include medical relief did not disqualify it from registration under section 12AA.5. Relying on a High Court judgment, it was concluded that trust deed amendments do not affect registration if the trust's activities remain charitable. The rejection based on trust deed amendment was deemed incorrect.6. The impugned order was set aside, and the case was remitted for a fresh decision considering the original trust deed and ongoing charitable activities. The appeal was allowed for statistical purposes.Judgment delivered by: Shri Vikas Awasthy, Judicial Member.