Religious purpose exclusion versus charitable purpose: non overriding religious objects do not attract Explanation 3, registration directed under sect...
Search-assessment proviso jurisdiction, time-barred valuation reports, and denial of cross-examination vitiate valuation-based and confession-based ad...
ITAT held that at the stage of registration under section 12AB, enquiry is confined to the trust's objects and the genuineness of its activities, while issues of income application belong to assessment. It found the trust's procurement, processing and sale of rejected agricultural produce were intrinsically connected with relief of the poor and environmental protection, with surplus reinvested in charitable work. The tribunal rejected the view that purchase-sale accounts, salary , or CSR-funded receipts made the activity commercial, applying the predominant object test and noting no evidence of private profit. It set aside the rejection and directed grant of registration.
ITAT held that at the stage of registration under section 12AB, enquiry is confined to the trust's objects and the genuineness of its activities, while issues of income application belong to assessment. It found the trust's procurement, processing and sale of rejected agricultural produce were intrinsically connected with relief of the poor and environmental protection, with surplus reinvested in charitable work. The tribunal rejected the view that purchase-sale accounts, salary , or CSR-funded receipts made the activity commercial, applying the predominant object test and noting no evidence of private profit. It set aside the rejection and directed grant of registration.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4814 
Join Channel 
