TaxTMI 
TaxTMI 
2021 (9) TMI 127
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....#39;ble Commissioner of Income Tax (Exemptions) is contrary to the facts of the case and the provisions of Law. 2. The Hon'ble Commissioner of Income Tax (Exemptions) is not justified in rejecting the application for registration Uls. 12A of the Income Tax Act of the Income Tax on the ground that the Assessee has not yet commenced its charitable activities. 3. The decision of the Hon'ble Commissioner of Income Tax (Exemptions) that the Society has to carry out charitable activities for entitling to exemption U/s 12AA is not correct. 4. The Hon'ble Commissioner of Income Tax (Exemptions) should have been seen the genuineness of the activity of the trust as mentioned in the Trust deed and decided the mat....
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....ssessee is the donation given to M/s Helping Hand Foundation of Rs. 1,00,000/-, which is not a charitable activity as defined u/s 2(15) of the Act. He, therefore, held that the there are no charitable activities carried out by the assessee so far as per its objects and hence, the genuineness and activities could not be verified. Relying on various case law, the CIT(E) came to a conclusion that the applicant is not fit for grant of registration u/s 12AA of the Act. 4. Aggrieved by the order of CIT(E), the assessee is in appeal before the ITAT. 5. At the outset, the ld. AR of the assessee submitted that the case of the assessee is squarely covered by the judgment of the Hon'ble Supreme Court in the case of Ananda Social & Educational Tr....
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....case of the assessee. He submitted that the CIT(E) also observed that the society contributed Rs. 1 lakh to M/s Helping Hand Foundation, (which is evident from the statement of income and expenditure for the year ended 31st Mach, 2018 vide page 45 of paper book) which is not a charitable activity in nature, which is beyond the object clause of the society. 7. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. We observe that the CIT(E) has dismissed the appeal for registration u/s 12A of the Act by holding that the society is not carrying any charitable activity and also observed that the society has given a donation of Rs. 1 lakh to M/s Helping Hand Foun....
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....Trust." Following the judgment, we reject the argument of the ld. AR that the CIT(E) is bound to grant registration u/s 12AA of the Income-tax Act only on the basis of object clause which is in charitable nature. In the impugned case, the CIT(E) has rightly exercised his power as per the Act as well as, as per the judgment of the Hon'ble Supreme Court quoted supra. We observe that the society has not taken any charitable activity as per the object clause except giving a donation of Rs. 1 lakh to M/s Helping Hand Foundation, which is not a charitable activity as opined by the CIT(E). While going through the object clauses of the assessee society, clause No. 4 reads as under: "To establish, run, support and grant aid or other fina....