TaxTMI 
TaxTMI 
2022 (12) TMI 872
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....Income tax Act, 1961. 2. The Assessee craves leave to add further grounds or to amend or alter the existing grounds of appeal on or before the date of hearing." 4. The only grievance of the assessee is against the rejection of its application for registration made under section 12A of the Act. 5. The brief facts of the case as emanating from the record are: The assessee trust has been constituted by a trust deed dated 01/07/2013. The trust has been registered with Charity Commissioner, Mumbai on 07/12/2013 vide registration No. E - 29998 (Mumbai). The assessee filed an application for registration under section 12A of the Act in the prescribed Form No. 10B. Accordingly, notice was sent to the assessee requiring it to furnish account details/documents like PAN cards of trustees and settlor, copy of bank account(s), NOC in respect of its office premises, certificate of registration issued by the Charity Commissioner, copies of audited accounts and note on activities undertaken by it to duly substantiated with documentary evidence. The learned CIT(E) vide impugned order denied the registration under section 12AA of the Act, by observing as under: "5. The detail....
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....rity Commissioner as required u/s 36A of BPT Act for taking loan has been taken. Al these facts are undisputed. 6. The facts highlighted above clearly show that a) The source of receipts of the Trust is unknown. b) There is no record of expenditure incurred. Therefore, it cannot be verified that the amount has been spent towards objects. c) The benefits of Trustees from the funds of Trust is clearly visible. d) The books of accounts prepared by the Assessee Trust including the audit report do not show the correct picture. The Assessee Trust not having certificate under section 12A/80G cannot be an acceptable reason for showing transactions differently in the books of accounts though this is the reason given by the Assessee Trust for showing the transactions differently from they are. 7. As per the provisions of section 12AA (1)(b), a trust is to be granted registration if the Commissioner is satisfied about the objects of the trust and the genuineness of its activities. Both these requirements are cumulative and not alternative. The satisfaction of the registering authority cannot be a subjective satisfaction based on whim or ca....
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....d contains the directions of taking money in the nature of donations and the same way trustee has taken the money in the nature of donations in order to treat the TB patients in near future but since the transaction is still in process hence should be accounted either in trustee account or preliminary expenses and also trust does have 12 A so from Audit point of view I cannot give the trust expenses benefit nor the income counting. Hence it will be treated in trustee account only. (20) Further the transaction was not fully in the nature of any loan so trustee have not Approach the Charity commissioner and the same we have said during our hearing process before the ITO that we have not filed any information s before the charity commissioner and for the said purpose we have filed condonation of delay before you and request you to kindly accept out condonation for the same. (b) Regarding reply against other points of charity commissioner provisions are: 1. The money was voluntarily received by the trustee in good faith in order to spend some money on foreign delegates and Delhi people to get medical treatment methods and technology to treat the TB patients i....
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....eatment reason for treating such trustee transactions in to said account. 4.4 I have filed all the 4 years charity commissioner returns upto date and the acknowledgements have been attached. As far as filing with income tax ix concerned there was an option in ITR 7 under AOP /BOI category trust without 12A and we have filed ITR 7 by clicking AOP or BOI option without 12A option and the file was successfully accepted by the E-filingdept and hence was filed. Trust me there was not any motive nor our undue intention to take any benefit of 12 A expenses and income treatments. All the expenses were disallowed and accounting treatment treated accordingly The same you can check with respective income tax efiling web site." 7. From the above, it is evident that the learned CIT(E) only took into consideration the events prior to the financial year 2017-18 in regard to which the assessee also accepted that the trustee could not maintain activity records properly. However, from the financial year 2017-18, the income and expenditure account indicates free medical camps, treating the patient at concessional rates being organised by the assessee. We further find that the photographs ....