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Income Tax Appellate Tribunal, BANGALORE BENCH ‘A’, BANGALORE
Before: SHRI A. K. GARODIA & SHRI LALIT KUMAR
He placed reliance on the tribunal order rendered in the case of M/s Manipal Alumni of Nephrology Trust vs. CIT in & 549/bang/2013 dated 21.02.2014 copy on pages 136 to 143 of the paper book. He pointed out that in this case, the tribunal followed the judgment of Hon’ble Karnataka High Court rendered in the case of DIT (E) vs. Meenakshi Amma Endowment Trust, 354 ITR 219 wherein it was held that in a case where the assessee approaches for registration u/s 12A within a short period of its formation, only the objectives of the trust for which it was formed would have to be examined to satisfy oneself about genuineness of the activities of the trust and carrying out of activities cannot be insisted for registration. He submitted that by following this judgment, the tribunal granted registration u/s 12A and also granted recognition u/s 80G. As against this, Learned DR of the revenue supported the order of CIT (Exemption).
We have considered the rival submissions and in our considered opinion, in the facts of the present case as discussed above, it cannot be said that there is no activity of the assessee. The quantum of activity cannot be a basis to deny recognition u/s 80G particularly when registration u/s 12A is already granted and exemption u/s 11 in scrutiny assessment is also allowed for A. Y. 2013 – 14 & 2014 – 15 as
per assessment orders u/s 143 (3) for these two years available in the paper book. We therefore, direct the learned CIT (Exemption) to grant recognition to the present assessee u/s 80G.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on the date mentioned on the caption page.