Trust building tsunami relief houses met Section 12AA twin conditions; registration ordered; Sections 11 and 12 entitlement for assessment

SC held that the trust's object of constructing houses for tsunami victims met the twin conditions of Section 12AA and the ld. Director of Income-tax (Exemptions) should have granted registration. The Court found the HC and ITAT correct in treating the trust's activities as prima facie genuine and reaffirmed that entitlement to exemption under Sections 11 and 12 is to be determined during assessment, not at the registration stage. The appeal was decided in consonance with prior three-judge bench authority, directing registration in favour of the trust.

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Learned counsel for the parties agreed that "the issue in the present appeal is covered by an order rendered by a three Judge Bench of this Court in Civil Appeal Nos. 5437-5438 of 2012 and other connected appeals, dated 19th February, 2020." The Court found that the view taken by the High Court and the Income Tax Appellate Tribunal, Delhi Bench, "is in consonance with the law laid down by this Court in the captioned appeals." Applying that precedent, the appeal was dismissed and pending applications, if any, were disposed of. The decision rests on adherence to binding precedent from the three-Judge Bench and affirms the appellate and tribunal conclusions without rehearing the substantive legal issue.

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