Application for Charitable Trust Registration Under Section 12 AA
In Society for the Promotion of Education, Adventure Sport and Conservation of Environment versus Chief of Income Tax (2008) 216 CTR (All) 167, the Allahabad High Court held that non transfer of an application for charitable trust registration before the expiry of six months as giving u/s 12AA (2) would bring about esteemed stipend of enlistment. In any case, this was switched by the Full Bench of the Allahabad High Court in CIT versus Muzafar Nagar Development Authority (2015) 372 ITR 209. The claim recorded by the office on account of Society for the Promotion of Education came up under the steady gaze of the Supreme Court. Held by the Supreme Court discarding the request:
1) The short issue is as to the considered enlistment of an application for charitable trust registration under Section 12AA of the Income Tax Act. The Allahabad High Court has taken the perspective that once an application for charitable trust registration is made under the said procurement and in the event that the same is not reacted to inside of six months, it would be taken that the application is enrolled under the procurement.
2) The educated Additional Solicitor General shows up for the appellants, has brought a worry that up for the situation of the respondent, since the date of use was of 24/02/2003, at the very least, the same would work strictly when six months from the date of the application for charitable trust registration.
3) We see no premise for such a worry following, to the point that is the main intelligent sense in which the Judgment could be caught in. In this way, keeping in mind the end goal to clarify any dread, we make it clear that the enrollment of the application for charitable trust registration under Section 12AA of the Income Tax Act on account of the respondent should produce results from 24/08/2003.
4) Subject to the above illumination and leaving every single other inquiry of law openly, the bid is discarded with no request as to expenses.
The ASCTE (Adventure Sport and Conservation of Environment) versus the Magistrate of Income Tax (2008) 216 CTR (All) 167 that there is a regarded enrollment is affirmed and the law set around the Full Bench in CIT versus Muzafar Nagar Development Authority (2015) 372 ITR 209 is no more great law.
It was amended by Supreme court for the welfare and promotion of the adventure sports along with Education and conservation of the Environment.