TaxTMI 
TaxTMI 
TaxTMI 
2021 (4) TMI 293
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....(E) has erred in holding that the activities of Trust are not charitable in nature and thereby refusing to grant registration u/s. 12AA, whereas in fact the activities of the Trust are charitable in nature and Trust is eligible for registration u/s. 12AA. 2. The appellant craves leave to add, alter, amend, delete and/or vary the above grounds of appeal/relief claimed at any time before the decision of the appeal." 3. Briefly, the facts of the case are as under:- The appellant society had made an application before the ld. Commissioner of Income Tax (Exemption) in Form No. 10A for grant of registration u/s. 12AA of the Act on 27.09.2019. On receipt of the said application, the ld. Commissioner of Income Tax (Exemption) called for certain....
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.... for the benefits of the doctors which is also part of the objects of the appellant society. He further submitted that the bills are in the name of the third party for the reasons that it represents the reimbursement of the expenses incurred by the resources person i.e. Speaker in the seminar. Thus, it was submitted that the observations made by the ld. Commissioner of Income Tax (Exemption) were not relevant to justifying denial of grant of registration u/s. 12AA of the Act. 7. On the other hand, ld. CIT-DR relied on the orders of the lower authorities. 8. We heard the rival submissions and perused the material on record. The only issue in the present appeal relates to the grant of approval of registration u/s. 12AA of the Act. The ld. C....
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....ied on by the assessee. Further, it is held that term "activities" include "proposed activities". 11. In the light of the dictum laid down by the Hon'ble Supreme Court citied (supra), even proposed activities can be considered as charitable in nature, therefore, the reasoning of the ld. Commissioner of Income Tax (Exemption) that since no charitable activity is carried out, registration u/s. 12AA of the Act cannot be granted, cannot be sustained in the eyes of law. 12. The mere fact that the bills for the expenditure in the name of third party does not lead to the conclusion that the expenditure was not incurred by the appellant society. As rightly submitted by the ld. AR, it can be instance of reimbursement of expenditure incurred by....
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....gh Court held that the mere introduction proviso to section 2(15) of the Act by itself would not render the activities of the assessee trust as non-genuine activities, so as to, entitle Commissioner of Income Tax (Exemption) to cancel and deny the registration u/s. 12AA of the Act. Similarly, the Co-ordinate Bench of the Tribunal in the case of Sarthi Youth Foundation vs. CIT, Exemption vide ITA No. 562/PUN/2020 order dated 18.12.2020 after referring to the several judicial precedents held as under:- "9. We heard the rival submissions and perused the material on record. The only issue in the present appeal relates to the grant of registration u/s. 12AA of the Act. From the perusal of the impugned order, it is clear that the ld. Commission....
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....ions:- (i) Fifth Generation Education Society vs. CIT, 185 ITR 634; (ii) Shantagauri Ramniklal Trust vs. CIT, 239 ITR 528; (iii) M. Visvesvaraya Industrial Research And Development Centre vs. ITAT, 251 ITR 852; (iv) New Life in Christ Evangelistic Association vs. CIT, 246 ITR 532; (v) N.N. Desai Charitable Trust vs. CIT, 246 ITR 452; and, (vi) CIT vs. Vijay Vargiya Vani Charitable Trust, 369 ITR 360. 11. From the perusal of the impugned order, it is crystal clear that the ld. Commissioner of Income Tax, Exemption, Pune had lost sight distinction between the process of registration and the exemption or assessment of income u/s. 11 of the Act. Therefore, the reasoning given by the ld. Commissioner of Income Tax, Exemption, Pune ....