Charitable trust registration and 80G approval depend on genuineness, supporting evidence, and fair procedural opportunity.

At the registration stage for a charitable trust, enquiry is limited to the trust's charitable objects and the genuineness of its activities; non-filing of a return under section 139(4A) by itself does not justify refusal of registration under section 12AA where genuineness is otherwise not displaced. For approval under section 80G(5)(vi), the authority must verify relevant supporting materials under rule 11AA(2)(ii) to satisfy itself about charitable genuineness, and where required documents were not produced, the matter may be restored for fresh consideration after giving a fair opportunity and observing natural justice.

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Issues: (i) Whether registration under section 12AA could be refused merely because the trust had not filed a return under section 139(4A), when the objects were charitable and the activities were not shown to be non-genuine; (ii) Whether refusal of approval under section 80G(5)(vi) was justified for want of supporting documents, or the matter required fresh consideration.

Issue (i): Whether registration under section 12AA could be refused merely because the trust had not filed a return under section 139(4A), when the objects were charitable and the activities were not shown to be non-genuine.

Analysis: At the registration stage, the enquiry is confined to the charitable objects of the trust and the genuineness of its activities. Non-filing of a return under section 139(4A) does not by itself establish that the trust's activities are not genuine. The record showed that the required particulars had been furnished and the Department did not dislodge the assessee's case that its objects were charitable and its activities were genuine.

Conclusion: Registration under section 12AA could not be denied on the sole ground of non-filing of the return under section 139(4A), and the assessee was entitled to registration.

Issue (ii): Whether refusal of approval under section 80G(5)(vi) was justified for want of supporting documents, or the matter required fresh consideration.

Analysis: Approval under section 80G(5)(vi) read with rule 11AA(2)(ii) requires verification of relevant materials to satisfy the authority about the genuineness of charitable activities. Since the assessee had not furnished the requisite supporting evidence before the authority, but sought one further opportunity, the matter warranted reconsideration with due observance of natural justice.

Conclusion: The refusal of approval was set aside and the matter was restored to the authority for fresh adjudication after calling for the necessary documents and evidences.

Final Conclusion: The assessee succeeded on the registration issue, while the approval issue was remitted for reconsideration, leaving the dispute only partly resolved in the assessee's favour.

Ratio Decidendi: At the stage of registration of a charitable trust, the authority's enquiry is limited to the objects of the trust and the genuineness of its activities, and registration cannot be denied solely for non-filing of a return; for approval under section 80G, the authority may require supporting evidence and decide the matter afresh after fair opportunity.

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