Denying 12AA registration to a Trust, Chukkapalli Pitchhaiah Foundation, Vijayavada, the Income Tax Appellate Tribunal (ITAT) held that the activity of organizing meetings and giving awards to eminent people do not fit into the definition of charitable purpose as per the Income Tax Act, 1961.
Earlier, the CIT refused to grant registration under Section 12AA of the Income Tax Act on the ground that their objectives were inconsistent with that of a charitable trust and further the foundation failed to furnish the PAN No. in form no. 10A.
The main activities of the foundation included organizing seminars, felicitating eminent personalities, and giving cash awards to the persons who made positive contribution to the society and organizing events or lectures on various subjects. Before the CIT, the foundation pleaded that these events were helping the country and falls under other public utility. But they failed to demonstrate the objectives are in fact charitable in nature and covered within the meaning of charitable purpose as per section 2(15) of the Act.
The bench noted that under the provisions of the Charities Act, 2005 charitable purpose must fall under one or more categories i.e. relief of poverty, advancement of education or the advancement of religion. The appeal was dismissed as the foundation failed to demonstrate their activities were purely charitable in nature. It was held that sole activity of organizing meetings and giving awards to eminent people do not fit into the definition of charitable purpose as per the Income Tax Act.
Read the full text of the Order below.
