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If trust with objects similar to yours is 12AA registered, then yours can get too.
If trust with objects similar to yours is 12AA registered, then yours can get too.
Yes, it is 100% true. If a trust similar to yours has 12AA registration, then you can site its name before tax authorities and seek 12A registration for yours too. It was held by ITAT Delhi Bench F. The case was of Rubber Skill Development Council (RSDC). RSDC had outsourced its training program. It was charging fees for training too. But ITAT held that DIT should consider giving registration as similar institutions are registered.
Details of the case:
The case number is ITA 3216/Del/2014.
Rubber Skill Development Council had appealed against the order of Director of Income Tax (Exemptions) before ITAT Delhi.
Date of hearing is 16.11.2015
Although different matters like
- educational institutions can carry out business.
- definition of business.
- mere carrying out of business does not disentitle the 12AA registration as proviso to 2(15) permits it till 20% of total receipts.
were also pointed out.
One interesting point:
But the eye-opener point that honourable court distinguished and sat aside the decision of DIT(E) is -
"If similar institutions having similar objects have been granted registration under section 12AA of the Income tax Act, 1961, there is no justifiable reason as to why the assessee should be deprived from availing such benefit."
Thats sweet:
Law is equal for all.
