2020 (2) TMI 581

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....ing the Commissioner of Income Tax (Exemptions) (for short, 'the CIT') to grant registration under Section 12AA of the Income Tax Act, 1961 (for short, 'the Act'). Following substantial questions of law have been claimed: "1. Whether on the facts and circumstances of the case the Hon'ble ITAT has erred in directing to grant registration instead of reverting it back for re-examination in the light of judgment of the Hon'ble Allahabad High Court in appeal No. 112 of 2013 in the case of CIT, Meerut Vs. M/s A.R. Trust, Meerut, wherein it was held that the Tribunal could have ordered for setting aside the order of Registering Authority refusing registration but it could not have directed for registration straight....

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....e Appellate Tribunal is contrary to the evidence and material on the record of the case and therefore, perverse?" Facts in brief are that the respondent-society came into operation since 10.5.1995 with the following aims and objects: "(a) to maintain, manage, improve, furnish, reshape, restructure, reconstruct amend alter or add in the existing Buildings, facilities and area so that these could be used in better way by Mahakali Devi devotees, worshipers, saints and visitors to the Mahakali Devi Mandir for religious, charitable and social purposes; (b) to construct more building in Mahakali Devi complex and develop the entire complex for better use by the devotees, worshipers, saints and public in general for religious, ....

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....ras, to help poor widows, orphans ages persons and sufferers of natural and national calamities; (m) to establish and run educational and vocational instructions, children recreations art and senior citizens home; (n) any other work of charitable nature for public in general." An application was filed by the society claiming registration under Section 12AA of the Act. The CIT rejected the application vide order dated 29.4.2016, considering that the land and complex whose maintenance was one of the aim and object of the society belonged to the government; further that for constructing the building hall, the focus was on religion and not on charity. The CIT considered that liability of Rs. 12,99,527/- shown on 31.3.2013 w....

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.... the Act, the CIT has to satisfy himself with regard to the genuineness of the activities of the trust and compliance of requirements of other laws for the time being in force. Section 12A of the Act lays down the conditions of applicability of Sections 11 and 12 of the Act. Title of Section 11 of the Act is as under: "Income' from property held for charitable or religious purposes" The Section states that subject to the provisions of sections 60 to 63 of the Act, the income mentioned in it shall not be included in the total income of previous year. The section nowhere provides that the property should be owned by the trust. The requirement is "held for charitable purpose". In the present case, the land though belonged to the g....