Tribunal grants fresh examination of trust's registration applications under 12AA and 80G .

The appeals, delayed by 44 days due to the COVID-19 pandemic, were admitted for adjudication on merits by the Tribunal. The rejection of the application seeking registration under section 12AA was set aside for a fresh examination by the CIT(E) based on the need to consider the genuineness of the trust's charitable objects and proposed activities. The application for registration under section 80G was also remanded for reconsideration following the decision on section 12AA. Both appeals were allowed for statistical purposes, providing the assessee with a reasonable opportunity.

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Issues Involved:
1. Delay in filing the appeals.
2. Rejection of application seeking registration under section 12AA.
3. Rejection of application seeking registration under section 80G.

Issue-wise Detailed Analysis:

1. Delay in Filing the Appeals:
The assessee's appeals were delayed by 44 days due to the COVID-19 pandemic and consequent lockdown. The impugned orders were passed on 30.03.2021 and received the same day, with the appeal filed on 12.07.2021. The delay was attributed to the pandemic, and the assessee cited the Supreme Court's decision extending the limitation period due to COVID-19. The Revenue did not object, and the Tribunal found the delay reasonable, condoning it and admitting the appeals for adjudication on merits.

2. Rejection of Application Seeking Registration under Section 12AA:
The assessee, a company incorporated under section 25 of the Companies Act, 1956, aimed to promote commerce, art, culture, and social development. The application for approval under section 12AA was filed on 04.09.2020 and rejected by the CIT(E) on 30.03.2021. The rejection was based on the non-undertaking of charitable activities. The assessee argued that there is no legal requirement to undertake charitable activities before seeking approval under section 12AA, citing judicial precedents supporting this view. The Revenue contended that the CIT(E) must examine both the objects and the genuineness of the activities, and the assessee failed to provide complete details and evidence of charitable activities.

The Tribunal noted that the CIT(E) requested additional documentation and explanations from the assessee, who provided partial information. The CIT(E) concluded that the assessee did not establish the genuineness of its activities and rejected the application. The Tribunal referred to the Supreme Court's decision in Ananda Social & Educational Trust vs. CIT, which held that a newly registered trust could be granted registration based on its objects without having undertaken any activities. The Tribunal emphasized that the term "activities" includes "proposed activities" and that the CIT(E) must consider whether the trust's objects are genuinely charitable and whether the proposed activities align with these objects.

The Tribunal also addressed the situation where a trust has been in existence for some time without undertaking activities. It concluded that the CIT(E) could examine the claim of no-activity and verify compliance with extant laws and any changes in the trust's constitution. The matter was set aside to the CIT(E) for a fresh examination in light of these discussions.

3. Rejection of Application Seeking Registration under Section 80G:
The CIT(E) rejected the application under section 80G because the registration under section 12AA was denied. Since the Tribunal set aside the matter regarding section 12AA registration, the section 80G application was also remanded to the CIT(E) for reconsideration.

Conclusion:
Both appeals were allowed for statistical purposes, and the matters were remanded to the CIT(E) for a fresh examination, providing reasonable opportunity to the assessee. The order was pronounced in the open Court on 15/11/2021.

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