Case Analysis: Gear Training and Research Foundation. v. CIT (E) ( 2021) 92 ITR 28 ( SN) (Jaipur) (Trib.)

Last updated: 17 May 2022

Court :
Jaipur Bench

Brief :
Hon’ble Tribunal in this case rightly held that company by virtue of being incorporated u/s 8 of the Companies Act, 2013 has committed to the approving authorities under the parent legislation that its activities are for the promotion of its aforesaid objects and it shall intend to apply its profits or income in promoting its objects and intends to prohibit the payment of any dividends to its members and has gone ahead and provided specific clauses in its memorandum of association to this effect. The Tribunal further said that where other arm of the government i.e. the MCA has examined the MOA of the company has after satisfaction related to utilisation of profit by the company has given registration under Section 8 of the Companies Act,2013, that registration will be considered as a valid ground for registration under Section 12AA of the Income Tax Act,1961.

Citation :
CIT (E) ( 2021) 92 ITR 28 ( SN) (Jaipur) (Trib.)