Once registration is granted, it is for the AO while framing assessment to consider the other provisions of the Act

Last updated: 26 September 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
At the outset, it is to be mentioned that none present from the assessee side but after going through the order of DIT(E), Kolkata it is noticed that the DIT(E), Kolkata has granted registration u/s. 12AA of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) w.e.f. 13.08.2010 from the date of Memorandum of Association/Trust Deed executed by assessee Trust. But the assessee has raised the issue that the DIT(E) has erred in holding that the proviso to section 2(15) of the Act will be applicable once the gross receipt crossed the limits specified therein. For this, assessee has raised following ground nos. 1 and 2: That the Ld. DIT(E) on granting registration u/s. 12AA has erred in holding the object of the trust as advancement of general public activity inspite of the objects and activities of the trust being related to provision of medical relief and education etc for charitable purposes only. That the Ld. DIT(E) has erred in holding that the proviso to section 2(15) shall be applicable once the gross receipts cross the limit specified therein despite the fact that such provso is applicable only on the specified activity mentioned therein is carried out.”

Citation :
GMCKS Light Workers Trust (PAN: AABTG4884B) (Appellant) Vs. Director of Income-tax, Exemption, Kol. (Respondent)