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1 - 10 of 15 (0.30 seconds)Section 12A in The Income Tax Act, 1961 [Entire Act]
Section 80G in The Income Tax Act, 1961 [Entire Act]
M/S. Ananda Social And Educational ... vs The Commissioner Of Income Tax on 19 February, 2020
7. Section 12AA of the Act provides for procedure for
registration. The Commissioner of Income Tax is required to
satisfy himself about the objects of the Trust and
genuineness of its activities and has to grant registration only
if it is so satisfied. The scope of examination is confined in
ascertaining whether the Trust is constituted genuinely for
9
carrying on charitable activities or whether it has the capacity
to carry out its professed objects. It is also well settled legal
proposition that at the time of grant of registration,
Commissioner of Income Tax is not required to examine the
application of income and has to examine whether the
objects of the Trust are charitable and whether the
application is made in consonant with requirements of
Section 12A of the Act read with Rule 17F of the Income Tax
Rules. The genuineness of the activities of the Trust is not a
matter to be looked into at the time of dealing with the issue
of registration of the Trust under Section 12AA of the Act.
(See: 'DIRECTOR OF INCOME TAX Vs. GARDEN CITY
EDUCATIONAL TRUST' (2010) 191 Taxman 238 (KAR)
AND 'ANANDA SOCIAL AND EDUCATIONAL TRUST Vs.
COMMISSIONER OF INCOME TAX' (2020) 114
Taxmann.com 693 (SC)).
The Income Tax Act, 1961
The Director Of Income Tax vs M/S Garden City Educational Trust on 15 July, 2009
7. Section 12AA of the Act provides for procedure for
registration. The Commissioner of Income Tax is required to
satisfy himself about the objects of the Trust and
genuineness of its activities and has to grant registration only
if it is so satisfied. The scope of examination is confined in
ascertaining whether the Trust is constituted genuinely for
9
carrying on charitable activities or whether it has the capacity
to carry out its professed objects. It is also well settled legal
proposition that at the time of grant of registration,
Commissioner of Income Tax is not required to examine the
application of income and has to examine whether the
objects of the Trust are charitable and whether the
application is made in consonant with requirements of
Section 12A of the Act read with Rule 17F of the Income Tax
Rules. The genuineness of the activities of the Trust is not a
matter to be looked into at the time of dealing with the issue
of registration of the Trust under Section 12AA of the Act.
(See: 'DIRECTOR OF INCOME TAX Vs. GARDEN CITY
EDUCATIONAL TRUST' (2010) 191 Taxman 238 (KAR)
AND 'ANANDA SOCIAL AND EDUCATIONAL TRUST Vs.
COMMISSIONER OF INCOME TAX' (2020) 114
Taxmann.com 693 (SC)).
Sole Trustee Loka Shikshana Turst vs Commissioner Of Income Tax, Mysore on 28 August, 1975
5. On the other hand, learned Senior counsel for the
assessee submitted that the Tribunal has recorded a finding a
fact that primary object of the assessee is for charitable
purpose and the aforesaid finding of fact has not been
demonstrated to be perverse. Therefore, no substantial
questions of law arises for consideration. It is further
submitted that since the object of the Trust is education,
therefore, the nature of activity of the assessee being
commercial or for business, cannot be gone into as the object
of the assessee is not for advancement of any other object of
general public utility. It is further submitted that since the
activities of the Trust have not yet commenced, therefore, no
inference with regard to its nature of activity can be drawn.
It is also urged that at the time of registration of the Trust,
the Commissioner should not go into the genuineness of its
activity. It is also pointed out that decision of the Supreme
7
Court in SOLE TRUSTEE, LOK SHIKSHANA TRUST, supra
is no longer a good law.