Dismissing the appeal of the Revenue the Court held that registration cannot be denied for failure to start charitable activities. The Assessing Authority has the power for cancelling the registration in case he found that the “charitable activity” was not undertaken, set up or established by the assessee.
DIT(E) v. Meenakshi Amma Endowment Trust (2022)447 ITR 663 / 219 DTR 505 / 329 CTR 594 / 289 Taxman 405(SC) Editorial : Decision in DIT (E) v. Meenakshi Amma Endowment Trust (2013) 354 ITR 219 (Karn.)(HC), affirmed.
S. 12AA : Procedure for registration-Trust or institution-Registration cannot be denied for failure to start charitable activities. [S. 12A,12AA(3)]