Charitable registration: grant of tax exemption where objects and genuine activities are satisfactorily evidenced; provisional restored.

Registration and approval hinge on two conjunctive requirements: the trust's objects must be charitable and its activities genuine, together with compliance with other laws material to achieving those objects. Where documentary material - trust deed, accounts, bank statements, donor and beneficiary records, vouchers and other evidence - establishes genuineness, registration under section 12A and approval under section 80G should be granted. Provisional registration cannot be summarily cancelled without specific statutory violations being identified and an opportunity afforded; the Commissioner's rejection based on mere deficiencies in particulars is unsustainable and provisional registration is to be restored.

---

---

Issues: (i) Whether registration under section 12A and approval under section 80G should be granted to the trust where its objects are charitable and the activities and supporting documentation on record establish genuineness of activities, despite the Commissioner recording adverse observations about certain particulars.

Analysis: The legal standard for registration requires satisfaction on two conjunctive tests: that the stated objects are charitable and that the activities are genuine, together with compliance of other laws material for achieving the objects, as framed by section 12AB(1) of the Income-tax Act, 1961. The material placed on record includes trust deed, applications for provisional and regular registration, multiple detailed replies to statutory notices, audited accounts, bank statements, lists of donors and beneficiaries, bills and vouchers, contractor agreements, beneficiary identity records and photographic evidence. The record shows that provisional registration had been earlier granted and that the Commissioner's objections focused on deficiencies in particulars and confirmations which either were provided on the record or relate to matters subject to verification at the assessment stage. Cancellation of provisional registration under section 12AB(4) requires specific violations identified and an opportunity; summary cancellation for the reason that the registration application was rejected without specifying statutory violations is contrary to procedural requirements and natural justice.

Conclusion: Registration under section 12A and approval under section 80G are to be granted. The Commissioner's rejection based on the noted deficiencies is not sustainable where the objects are charitable, the activities are supported by voluminous documentary evidence on record, and no material non-compliance of other laws material to the objects has been shown. The provisional registration is to be restored.

Ratio Decidendi: For the purpose of registration under section 12AB(1) of the Income-tax Act, 1961, the authority must be satisfied only about the charitable nature of objects, genuineness of activities and compliance with other laws material to achieving the objects; where those conditions are met on the material before the authority, registration may be granted and provisional registration cannot be summarily cancelled without showing specific statutory violations and affording opportunity.

---