TaxTMI 
TaxTMI 
2024 (9) TMI 269
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....at the Ld CIT(Exemption)/A.O. has rejected application for registration under section 12AB(1)(b)(ii)(B) of Income Tax Act, 1961 on the grounds of incomplete form 10AB, Rajasthan Public Trust, 1959 and genuineness of activities. 2. That the Ld CIT(Exemption)/A.O. has cancelled the provisional registration under clause (vi) of clause (ac) of sub-section (1) of section 12A. 3. That the Ld CIT(Exemption)/A.O. has grossly erred in law as well as in facts in not appreciating the documents/information furnished during the course of proceedings. 4. That the appellant reserves his right to add, amend or alter any of the ground on or before the hearing." 2. Shri S.S. Choudhary-CA filed letter dated 07.06.2024 requesting ....
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....rified due to non-compliance; and Assessee has filed incomplete Form No.10AB. The relevant paragraphs of the ld.CIT(E)'s order are reproduced here as under : "It is important to note here that provisions and definition of public trust in Rajasthan Public trust and Bombay Public Trust Act, 1950 are analogous. Thus this decision, further clarify that if an NGO is for public religious or public charitable or both purposes, registration under public trust in mandatory. Further Hon'ble Rajasthan High Court in case of Public Trust Shri Geeta Satsang Bhawanvs. Om Prakash Mr. D.C. Sharma, Civil Appeal no. 300 of 2006, has further held in para 5 that earlier requirement of minimum income and property has been done away and since 1982 on....
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....vide letter dated 28.12.2023 was given a show cause to submit documents/explanation, by 12.01.2024, the relevant portion of which is reproduced as under. "Whether the institution is registered under Rajasthan Public Trust Act, 1959. If not, please give explanation that why same should not be considered violation of section 12AB(1)(b)(i) (B) of the Income Tax Act read with sec 17 of the Rajasthan Public Trust Act, 1959 and decision of Hon'ble Apex Court in the case of New Noble Education Society Civil Appeal No. 3795 of 2014 dated 19.10.2022 and why the application should not be rejected." However, in response to the above query no reply furnished by the applicant nor furnished copy of certificate regarding its registra....
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..... Such type of verification is necessary to keep a check and balance on the actual working of the trust. Since, the applicant didn't furnish sought details, in the absence of such documents/details, the justification of impugned activity could not be derived and it is not known whether the applicant is genuinely carrying out charitable activity as per its objects. As 6 opportunities already provided, which are more than sufficient if assessee has anything in its support. Thus, it is clear that assessee is not doing activities genuinely. Hence, the applicant has failed to justify the genuineness of activities and thus falls out of the scope of registration u/s 12AB of the Act. 05. In view of above discussion assessee's claim....
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....h them. The relevant paragraph 68, 69 and 70 of the Hon'ble Supreme Court's decision is reproduced here as under : "67. In the event of failure to comply with Section 43(1), or failure to intimate changes in the trust, or for supplying false information, the trustee or other person in charge, can be penalized by Section 43 (11). Section 44 empowers the Commissioner to direct charitable organizations and trusts to comply and register under the Act. 68. The assessees had argued that since they were registered under the Andhra Pradesh Societies Registration Act, 2001 or were trusts duly registered, they could not be compelled to comply with state laws as a condition for consideration of their application as charitable institu....
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....These and other provisions enable the State, which is concerned in the proper administration of such organizations, to ensure that they are managed efficiently without misfeasance. They also contain provisions to protect the interests of trusts, especially funds and properties. 70. In view of the above discussion, it is held that charitable institutions and societies, which may be regulated by other state laws, have to comply with them- just as in the case of laws regulating education (at all levels). Compliance with or registration under those laws, are also a relevant consideration which can legitimately weigh with the Commissioner or other concerned authority, while deciding applications for approval under Section 10 (23C)." ....