This case summary discusses the appeal filed by Hanumatdham Vidyapeeth Nyas, Muzaffarnagar against the Commissioner of Income Tax (Exemption), Lucknow regarding the denial of registration under section 12AA of the Income Tax Act, 1961. The case is referenced under ITA 122/DEL/2021 and was concluded on July 13, 2021.
Hanumatdham Vidyapeeth Nyas, a trust based in Muzaffarnagar, U.P., sought registration under section 12AA of the Income Tax Act, 1961, which was denied by the CIT (Exemption), Lucknow. The denial was based on the absence of sufficient material to prove the trust’s activities.
The appellant, represented by Advocate Anil Kumar Jain, argued that the CIT (Exemption) had erred in rejecting the registration despite the trust providing all requested information. The respondent, Ms. Sunita Singh, CIT- DR, supported the denial citing the lack of evidence regarding the trust’s active charitable endeavors.
The tribunal, led by Judicial Member Shri Sudhanshu Srivastava and Accountant Member Shri Prashant Maharishi, heard the case. The critical issue was whether the CIT (Exemption) was justified in requiring proof of charitable activities for registration under section 12AA.
The tribunal concluded that the CIT (Exemption)’s approach was incorrect. The law requires only the examination of the trust’s objects for genuineness during the registration process under section 12AA, not an assessment of actual activities. Therefore, the tribunal restored the case to the CIT (Exemption) for re-evaluation based on the trust’s stated objectives rather than its executed activities.
This case underscores the legal expectations during the registration process under section 12AA of the Income Tax Act. It clarifies that the examination should focus on the trust’s objectives rather than its operational history. The judgment is a reminder for regulatory bodies to adhere to legal standards while evaluating trust registrations.
The case of Hanumatdham Vidyapeeth Nyas vs. CIT (Exemption) highlights critical aspects of the registration process under the Income Tax Act, setting a precedent for how similar cases should be handled in the future.
Appeal for Denial of Registration: Hanumatdham Vidyapeeth Nyas vs CIT (Exemption) – ITA 122/DEL/2021
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