Trust Registration valid for sec. 25 Companies formed with charitable objects

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ITAT CHENNAI BENCH ‘A’

Social Pedia Knowledge Foundation

v.

Director of Income-tax (Exemptions)

IT APPEAL NO. 1910 (MDS.) OF 2012

JANUARY 24, 2013

 

In the instant case, a perusal of the object clause of the company shows that it has been incorporated with the aim of providing education, facilitate social and economic empowerment, economic development programs, literacy programs, training programs for villagers and downtrodden people. How these objects are to be achieved should be left to the assessee. The fact that the assessee has been incorporated under section 25 of the Companies Act, 1956 show that it has been formed for promoting charity or any other useful object and intends to apply its profits, if any or other income in promoting its objects. In other words, it’s a non-profit earning organization.

In our considered view, the Director of Income Tax (Exemptions) merely on assumption has rejected the application of the assessee for registration under section 12AA. The impugned order of Director of Income Tax (Exemptions) is set aside. The Director of Income Tax (Exemptions) is directed to grant registration to the assessee under section 12AA.