Director of Income-tax (Exemptions), Chennai v. M/s. Ravi Rajasimhan Charitable Trust
[Citation -2015-LL-0112-18]
| Citation | 2015-LL-0112-18 |
|---|---|
| Appellant Name | Director of Income-tax (Exemptions), Chennai |
| Respondent Name | M/s. Ravi Rajasimhan Charitable Trust |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 12/01/2015 |
| Judgment | View Judgment |
| Keyword Tags | continuance of registration • benefit of registration • grant of registration |
| Bot Summary: | For Appellant : Mr. J.Narayanasamy Standing counsel for Income Tax For Respondent : Mr. N.Devanathan JUDGMENT This Tax Case is filed by the Revenue as against the order of the Income Tax Appellate Tribunal raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that assessee is entitled for registration under Section 12AA 2 2. The issue involved in the present case is whether the trust on its inception would be disentitled to the benefit of registration under Section 12AA of the Income Tax Act on the ground that the activities of the Trust has just started. In the present case also, the Revenue only questions the trust not having commenced its activity for the grant of registration. In so considering the application, the Commissioner has to give an opportunity to the assessee as provided for under proviso to sub-section of Section 12AA. Under sub-section of Section 12AA, the Commissioner is given power to cancel the registration, if he satisfies that the objects of such trust are not genuine or not being carried on in accordance with the objects of the trust. When such an authority is vested with the Commissioner to cancel the registration in the event of the trust not being carried on in accordance with the objects of the trust, we do not find any ground to say that merely on the date of the application, the assessee trust had not commenced its activities registration could not be granted. 3 Considering the fact that the continuance of registration is further a subject matter of scrutiny by the Commissioner as contemplated under Section 12AA(3) of the Income Tax Act, we do not think that the Revenue would be justified in refusing the registration at the threshold. The Tribunal had followed the decision of the Gujarat High Court in the case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust reported in 29 Taxman 228. |