2020 (4) TMI 539

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.... in the prescribed Form No. 10A on 15th March 2019. In order to verify, a notice dated 29.03.2019 was issued and served on the assessee requiring it to furnish certain details like PAN cards of Trust & Trustees, copy of bank account(s), NOC in respect of its office premises, certificate of registration/certificate of incorporation, copies of audited accounts, donors list alongwith confirmation from donors and note on activities undertaken by the trust with documentary evidence. The details were called for hearing on 01.05.2019 & 17.07.2019 and none appeared, but assessee filed following documents on 23.07.19 which are reproduced below:- i) Certificate U/s.l3(l)(c). ii) Notes on Activities carried out by the Trust ....

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....provisional account. 4. On 01.08.2019, none appeared on behalf of the assessee nor filed any details as called for. Thereafter, Ld. CIT(E) passed this order with observation that the material submitted by the assessee are not enough to arrive at a satisfaction about of objects of the trust and the genuineness of the trust and its activities, which are essential conditions before granting of registration. Ld. CIT(E) further observed that assessee has failed to furnish the required information despite giving four opportunities. He further observed that in order to grant registration u/s 12AA, only when the Commissioner is satisfied about the objects of the Trust and the genuineness of its activities. Both these requirements are cumulative ....

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....hich assessee has submitted note on activities carried on by the trust. He further brought to our notice the trust deed which was submitted before Ld. CIT(E) which contains the objects of the Trust. He submitted that Ld. CIT(E) has to verify the objects whether it is charitable or not and the details which he asked the assessee to submit the information which is relevant for the assessment and not the information which is required at the time of registration. For that proposition, he relied upon the following case laws:- i) Vidyadayani Shiksha Samiti Vrs. CIT (2018) 62 ITR (Trib) 487 (Del) ii) CIT vrs. Babu Ram Education Society (2018) 96 taxmann.com 606 (Allahabad HC). 7. On the other hand, Ld. DR submitted that as per....

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....n simplicitor of the entity of a Trust, which is condition precedent for claiming of benefits under the other provisions of the Act regarding exemption of income, contribution etc. No examination of the modus of the application of the funds of the Trust or an examination of the ethical background of its settlers is called for while considering an application for registration. The I.T.A.T. further held that stage for consideration of relevance of the object of the Trust and application of its fund arise at the time of assessment, when benefits are claimed by assessee in terms of Sections 11 and 12, the question as to the nature of such contribution and income can be looked into. At the time of registration of the Trust, going by the binding ....