Trust's Appeal Upheld for Registration under Income-tax Act

The trust's appeal against the rejection of registration under section 12AA of the Income-tax Act was successful as the ITAT Kolkata held that the trust, with charitable objectives and genuine activities, was entitled to registration. Consequently, the denial of recognition under section 80G (5) (vi) was overturned as it was based on the absence of registration under section 12AA. Both appeals were allowed, and the orders were pronounced on 19.10.2016.

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Issues:
1. Appeal against rejection of registration u/s.12AA of the Income-tax Act 1961.
2. Appeal against denial of recognition u/s.80G (5) (vi) of the Income-tax Act 1961.

Analysis:
1. The appellant, a trust formed by a deed dated 22.12.2014, applied for registration u/s.12AA of the Income Tax Act, 1961, before the CIT (Exemption), Kolkata. The application was rejected on 28/10/2015, citing insufficient activities to justify registration. The appellant contested this rejection, arguing that the CIT(E) did not provide a valid reason for denial. The ITAT Kolkata noted that the CIT(E) expected more activities from the trust, but this criterion is not relevant for registration under Sec.12AA. Since the trust's objects were charitable and its activities genuine, the ITAT held that the appellant was entitled to registration u/s.12AA, directing the same.

2. Additionally, the denial of recognition u/s.80G (5) (vi) was based on the absence of registration u/s.12AA. Given the grant of registration u/s.12AA, the ITAT ruled that the appellant should also be approved u/s.80G (5) of the Act. Consequently, both appeals were allowed, and the orders were pronounced on 19.10.2016.

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