TaxTMI 
TaxTMI 
2024 (3) TMI 527
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....sessee provides any benefit to Christian community. Since assessee got the premises free of any rent, assessee trust was set up there as we did not have our own land and avoided paying high rent. As such, this presumption for rejecting our application is wrong and arbitrary. 3. For that the allegation being made on basis of the inspector report that the assessee trust is involved in conversion of religion for illiterate and economical weaker section of society is baseless and incorrect. There is no basis or documentary evidence to support the findings of the inspector. It is not clear on what basis has it been alleged by the inspector that assessee was involved in such activity. Any findings made on presumptions basis without supporting evidence or documents cannot be made the basis of rejection of our application. 4. For that Ld. CIT (Exemption) should have provided the assessee with the copy of report submitted by the inspector for cross verification. The report of the inspector alone cannot be the basis for rejection of our application. 5. For that the allegation being made that assessee is involved in dubious activity is incorrect and baseless. We had....
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....ore us with the contentions raised in ground of the present appeal. 6. At the outset, Ld. AR on behalf of the assessee to support the contentions of the assessee has submitted a written synopsis which is extracted as under: Asha Association, Surguja ITA no. 29/RPR/2023 (Assessee) Submission of assessee l . Whatever were the findings of ITC) (E) or his Inspector, nothing was ever confronted to the assessee by CIT(E). Therefore, allegation like office being situated within a church campus, allegation of religious conversion etc. has remained un-confronted. 2. Only issue on which registration has been denied is, discrepancy in name and alleged violation of FCRA. 3. Registration u/s 12A granted i) Copy of registration certificate u/s 12A is at PN 10 to 12 of P B. Registration continues, not withdrawn. ii) Registration u/s 12AA is granted after examining genuineness of activities of trust and registration granted has not been revoked or cancelled. Thus, approval u/s 80G cannot be rejected. Reliance on: - M/S Adarshila Shikshan Sangh vs. CIT in ITA no. 379/RPR/2014 vide order dt. 15.01.2019, PN 65 to 69 of PB, relevant fin....
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....ely for this reason, registration could not be denied without pointing out any instance that assessee was into any religious activity, expenses whereon exceeded 5%. ii) Allegation of conversion Totally unsubstantiated. Nothing brought on record. Even the so called Inspector's report neither reproduced in rejection order nor provided to assessee. If something relied upon by CIT(E) for drawing adverse inference, it should have been provided. If not provided, same is liable to be ignored. Reliance on: - - Kishinchand Chellaram vs CIT (1980) 125 ITR 713 (SC) - ACIT vs Sun & Sun Inframetric Tax Case no. 5 & 7 of 2022. It was held vide para 17 that if the material used by Pr. CIT is not provided to assessee & cross examination is not allowed, action of authority needs to be quashed. iii) Enquiry behind back of assessee, not confronted, could not be used against assessee. Reliance on: - Modern Malleables Ltd. vs DCIT (2020) 58 CCH 272 (1<01. Trib.) - Urmiladevi Charitable vs CIT (E) (2019) 56 CCH 142 (Del. Trib.) Heirs & LRs of Late Laxmanbhai S Patel vs CIT (2010) 327 ITR 290 (Guj.). 8. As per sec. 12AA(l)(a)(ii) - CIT to....
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....ave been confronted to the assessee before doing so. Ld. AR placed his reliance on case laws as mentioned in the synopsis above. it is further submitted that enquiries behind the back of assessee without putting it to notice, to be used against the assessee, is not permissible under the settled principle of law, for which case laws have been relied upon which are mentioned in the synopsis of the assessee extracted in the foregoing para's. It is further submitted that for registration u/s 80G(5) there is no such provisions wherein the issue relating to FCRA could be used against the assessee for denial of registration u/s 80G(5). 9. Based on aforesaid submissions, It was the pleading of the Ld. AR that the denial under the 80G was without any reasonable basis and therefore, the order of Ld CIT(E) needs to be quashed with the directions to grant registration u/s 80G(5). 10. In rebuttal, Ld. CIT DR submitted that Ld. CIT(E) has rightly rejected the application of the assessee, wherein all the reasons for rejection leading to denial of registration u/s 80G are categorically mentioned and therefore, the assessee association is not entitled to the grant of registration u/s 80G(....