For registration under section 12AA, authorities must only ensure the trust’s objectives are genuinely charitable: Supreme Court
Trusts, Registration, and Tax Exemptions: True and correct interpretation of section 12AA: Recent Supreme Court decision:
The Supreme Court has recently held that for registration under section 12AA, authorities must ensure the trust’s objectives are genuinely charitable, but the trust doesn’t need to be actively carrying activity at that time.
Registration doesn’t guarantee tax exemption under sections 10 and 11 of the Income-tax Act, as the assessing officer will look into the claims for exemption when the trust files a return. If the AO is not convinced, the officer can deny the exemption.
The copy of the order is as under:
