TaxTMI 
TaxTMI 
2024 (9) TMI 269
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....B(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 for adjournment. The relevant letter is reproduced here as under : "Subject: Adjournment of hearing for Appeal....
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.... "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 onward every public trust irrespective of its income or properties need to be registered under Rajasthan Public trust Act, 1959. Further, as discussed in earlier para....
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....stitution 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 registration under RPT Act, 1959. Thereafter, two more opportunities were also given vide letter dated 23.01.2024 & 11.02.2024, but on every event applicant failed to furnished any material on ....
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....ls, 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 of registration section 12AB is liable to be rejected and thus being rejected on following grounds:- * Incomplete Form 10AB. * Rajasthan Public Trust Act, 1959. * Genuineness of Activities and non-co....
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....plying 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 institutions, under Section 10 (23C). 69. This court is of the opinion that the findings in the impugned judgment on this aspect are sound. The requirement of registration of every charitable institution is not optional. Aside from the fact that the ....
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.... 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)." 6.2 The provisions of the Andhra Pradesh Charities Act and provisions of the Rajasthan Public Trust Act are almost identical. Therefore, decision of the Hon'ble Supreme Court in the case of New Noble Education Society(supra) on this issue is squarely applicable to the assessee. Ther....