REGISTRATION OF TRUST IS NOT CANCELLED AUTOMATICALLY WHEN RECEIPTS EXCEED THRESHOLD LIMIT SPECIFIED IN U/S 2(15)
Section 12AA(3) provides for
cancellation of registration of a trust only on the grounds that the activities of such trust are not genuine or are not being carried out in accordance with the objects of the trust. Section 12AA (3) does not envisage examination of activities of trust in the light of section 2(15) and does not provide for cancellation of registration of trust on the
grounds of violation of the two provisos of section 2(15). Thus, if in any year, the gross receipts from the trade or commerce of the trust exceeds Rs. 10 lakhs/Rs. 25 lakhs, as stipulated in section 2(15), then the AO can examine the allowability of exemption under Sec. 11 but the same has no effect on cancellation of registration of trust - RAJASTHAN HOUSING BOARD v. CIT [2012]
Section 12AA(3) provides for
cancellation of registration of a trust only on the grounds that the activities of such trust are not genuine or are not being carried out in accordance with the objects of the trust. Section 12AA (3) does not envisage examination of activities of trust in the light of section 2(15) and does not provide for cancellation of registration of trust on the
grounds of violation of the two provisos of section 2(15). Thus, if in any year, the gross receipts from the trade or commerce of the trust exceeds Rs. 10 lakhs/Rs. 25 lakhs, as stipulated in section 2(15), then the AO can examine the allowability of exemption under Sec. 11 but the same has no effect on cancellation of registration of trust - RAJASTHAN HOUSING BOARD v. CIT [2012]
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