The High Court, dismissing the Revenue’s appeal and affirming the Tribunal’s order granting registration under section 12AA, held that where the assessee-SPV, promoted and funded by the State Government, was engaged in activities advancing entrepreneurship and public utility, registration under section 12AA could not be denied by invoking the proviso to section 2(15). At the stage of registration, the CIT(E)’s enquiry is confined to the charitable objects and genuineness of activities. Since the statutory conditions of section 12AA were satisfied, registration cannot be denied. SLP of revenue dismissed.
CIT (E) v.Aic@36Ince (2026) 486 ITR 422/ 182 taxmann.com 404 ((SC) Editorial : CIT (E) v.Aic@36Ince [2025] 170 taxmann.com 496 /(2026) 486 ITR 416 (Chhattisgarh)(HC)
S. 12AA: Procedure for registration-Trust or institution-Charitable purpose-Registration cannot be denied merely because activities promote entrepreneurship, incubation or economic development; at the registration stage, CIT(E) is required to examine only charitable objects and genuineness of activities-High Court held the tribunal justified in directing grant of registration under section 12AA-SLP of revenue was dismissed. [S. 2(15), 12AA(1)(b)(i), Art. 136]
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