HC nods to trust registration as it carried out a few charitable activities due to receipt of paltry donations

IT : Where assessee-foundation, formed to promote cause of education, gave major portion of donation received for benefit of students during first year of its formation, Tribunal rightly concluded that charitable activities carried out by assessee could not be regarded as of low magnitude and, thus, assessee's claim of registration under section 12AA was to be allowed

■■■

[2014] 42 taxmann.com 325 (Gujarat)

HIGH COURT OF GUJARAT

Commissioner of Income-tax

v.

Satvara Education Foundation*

Section 12AA of the Income-tax Act, 1961 - Charitable or religious trust - Registration procedure [Magnitude of charitable activities] - Assessee-foundation was formed to promote and advance cause of education, to grant aid or other assistance to all types of educational institutions for benefit of students - Assessee made an application for registration under section 12AA - Commissioner finding that no major activities had been carried out by assessee-trust/foundation, rejected its application - Tribunal noted that it was first year after assessee-trust/foundation came to be established - It was also noted that total donation received by assessee-trust was only Rs. 7103 out of which amount given as donation/scholarship to girl students was about Rs. 4,000 - Tribunal, thus, taking a view that charitable activities carried out could not be called as of low magnitude, granted registration to assessee-trust - Whether on facts, impugned order passed by Tribunal did not require any interference - Held, yes [Para 4][In favour of assessee]