The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that the society formed to impart training to the State Govt employees are eligible for income tax exemption under section 12AA of the IT Act, 1961.
Before the authorities, the assessee-Trust claimed that it is registered under Bombay Public Trust Act, 1950 and it is also registered under the Societies Registration Act, 1860 on 01.03.2008. according to them, the trust exists solely for education and the advancement of general public utility and not for profit and activities of the trust are genuine. It was also submitted that the trust is disseminating training which ultimately benefited the public at large.
However, the department rejected the registration merely on the ground of non-furnishing of documents/information by the assessee to study the bona-fides of the objects of the assessee’s Trust.
While allowing the contentions of the assessee, the Tribunal held that the assessee responded to the queries raised by the Ld. CIT(Exemption) and uploaded the requisite documents/information on the ITBA portal of the Department.
The State Government took a view that the finding recorded by the Ld. CIT(Exemption) that the registration cannot be granted for the assessee as it is involved in imparting the training to the employees of the state govt, is incorrect and contrary to the law.
“The State Government Employees working with state govt. belongs to various states of the society and they are not restricted to one religion, caste or creed. If there is an improvement in their workmanship and the managerial skill then it will indirectly benefit the public and also to the Government. In view of the above, we are of the opinion that the assessee is entitled to get relief claimed before us and accordingly, we direct the Ld. CIT(Exemption) to issue the registration certificate from the date of application u/s.12AA of the Act. Thus, the grounds raised by the assessee in this appeal are allowed,” the Tribunal said.
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