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SURYA PRAKASH KESARWANI, AJAY KUMAR GUPTA
Commissioner Of Income Tax (Exemption), Kolkata – Appellant
Versus
Harnarayan Rajdulari Devi Taparia Charitable Trust – Respondent
JUDGMENT :
1. Heard Ms. Smita Das De, learned senior standing counsel for the appellant/Income Tax Department. None appears for the respondent.
2. This appeal was admitted by this Court by order dated 20.08.20196 on the following substantial question of law:-
Facts :
3. Briefly stated, facts of the present case are that the respondent is a trust which came into existence on 29.04.2016. The trust filed an application in Form-10A on 17.11.2016 for grant of registration under Section 12AA of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act, 1961’) and also submitted an application of even date for granting registration under Section 80G of the Act, 1961. The Commissioner of Income Tax (Exemption) examined the application of the respondent for grant of registration under Section 12A(1) of the Act,1961 and rejected it by the order dated 01.05.2017 on the ground that the respondent
Registration under Section 12AA cannot be denied solely for not commencing activities if the trust's objectives are charitable.
For regular registration u/s 12A(1)(ac)(iii), authority must verify genuine charitable objects and legal compliance; mere association or doubts on initial activities without material do not justify r....
New charitable trusts eligible for S.12AB registration based on charitable objects and proposed activities; non-commencement alone not grounds for denial.
Non-commencement of activities does not render trust non-genuine for registration u/s 12AB; assesses proposed charitable objects.
Section 13 inapplicable at registration stage u/s 12AB; limited to exemption at assessment. Grant based on charitable objects and genuine activities.
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