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RITU BAHRI, MANISHA BATRA
Commissioner of Income Tax (Exemptions) Chandigarh – Appellant
Versus
Nanak Chand Jain Charitable Trust – Respondent
| Table of Content |
|---|
| 1. facts of the case involving trust registration (Para 1 , 2 , 3) |
| 2. tribunal's decision to allow trust appeal (Para 4 , 5) |
| 3. examination parameters for trust registration (Para 6 , 7) |
| 4. power of itat regarding trust registration (Para 8 , 9 , 10) |
| 5. final direction to grant registration (Para 11 , 12) |
JUDGMENT
Ritu Bahri, J.
This order shall dispose of six income tax appeals i.e. ITA Nos. 292-2018, 312-2018, 81-2020, 74-2021, 4-2022 and 222-2022 as the issue involved in all the appeals is identical. For the sake of brevity, facts are being extracted from ITA-292-2018.
2. The revenue has come up in appeal against the order dated 09.02.2018 (Annexure A-2) passed by the Income Tax Appellate Tribunal, New Delhi (hereinafter referred to as 'the Tribunal') whereby the appeals filed by the assessee were allowed by setting aside orders passed under Section 12AA and under Section 80G(5)(vi) of the INCOME TAX ACT , 1961 (hereinafter referred to as the 'Act, 1961').
3. The brief facts of the case are that the respondent-assessee is a trust, registered vide Deed dated 27.03.2015. The trust was started by the settler M/s. Veers Overseas Ltd., a limited company, which, in order to
Registration under Section 12AA cannot be denied solely for not commencing activities if the trust's objectives are charitable.
A trust with both charitable and religious purposes is eligible for registration under Section 12AA of the Income Tax Act, 1961, provided it serves the public at large.
Section 13's applicability is restricted to assessment stages, not registration, leading to the trust's re-evaluation.
Section 13 inapplicable at registration stage u/s 12AB; limited to exemption at assessment. Grant based on charitable objects and genuine activities.
Section 13(1)(b) of Income Tax Act inapplicable to trusts created before 1961, even for specific communities; registration under Section 12AB must be granted.
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