Trust Appeals Denied: ITAT Dismisses Incomplete 12AA Registration Applications; Trusts Advised to Reapply with Full Info.

The ITAT dismissed the appeals of four trusts challenging the CIT (Exemption), Mumbai's rejection of their registration applications under section 12 AA of the Income-tax Act, 1961, due to incomplete submissions. The Tribunal upheld the CIT's decision, directing the trusts to reapply with complete information within 90 days for reconsideration.

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Issues:
- Appeals by four trusts against order under section 12 AA of the Income-tax Act, 1961 by CIT, Mumbai.

Analysis:
1. The appeals were filed by four different trusts challenging the orders passed by the Commissioner Of Income Tax (Exemption), Mumbai under section 12 AA of the Income-tax Act, 1961. The appeals were disposed of collectively due to identical facts involved in each case.

2. a. ITA No. 1735/Mum/2023: Shree Siddhakala Vishwath Mandal Kandivali W appealed against the rejection of their application for registration under section 12 AB of the Act. The rejection was based on the incomplete submission of documents despite multiple notices issued by the CIT (Exemption). The appeal was filed as the assessee disagreed with the rejection.

3. b. ITA No. 1731/Mum/2022: Siddhakala Bhakta Mandal appealed against the rejection of their recognition under section 12AA of the Act. The rejection was due to the failure to provide required information despite notices issued by the CIT (Exemptions). The appeal was filed challenging the rejection order.

4. c. ITA No. 1734/Mum/2023: Siddhakala Vishwastha Mandal appealed against the rejection of their registration under section 12 AB of the Act. The rejection was based on the non-furnishing of information despite notices issued by the CIT (Exemptions). The appeal was filed to contest the rejection.

5. d. ITA No. 1733/Mum/2023: SIDDHKALA VISHWASTHA MANDAL appealed against the rejection of their trust recognition under section 12 AB of the Act. The rejection was due to incomplete submission of the application despite notices issued by the CIT (Exemptions). The appeal was filed challenging the rejection decision.

6. The Authorized Representative of ITA No. 1734/M/2023 argued that the assessee was unaware of the information requirement for form number 10 AB. They claimed that the notices were not received, and if available on the ITBA portal, the response could not be given due to lack of awareness. The representative stated that all necessary information is available and can be resubmitted if granted relief to do so, highlighting identical issues in all four appeals.

7. The Departmental Representative contended that the rejection of the applications was justified as the required information was not provided within the stipulated time frame. The CIT (Exemption) was obligated to make a decision by 31st March, 2023, and in the absence of essential details, the rejections were appropriate.

8. After considering the arguments, the Tribunal found that the trusts failed to provide necessary information for registration under section 12 AA of the Act. The rejection was upheld based on the inability to ascertain the trust's objectives and activities' genuineness. The Tribunal directed the trusts to reapply with complete information and respond to the notices within 90 days for further consideration by the CIT (Exemption).

9. In conclusion, all four appeals were allowed with directions for the trusts to reapply with complete information within the specified timeline. The Tribunal's decision was pronounced on 17.08.2023.

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