TaxTMI 
TaxTMI 
2024 (9) TMI 1373
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....ation u/s 12AB of the IT Act, 1961 on the ground that (i) assessee is not registered under Rajasthan Public Trust Act, 1959 and (ii) assessee has not proved the genuineness of its activities. 2. The Ld. CIT(E) has further erred on facts and in law in cancelling the provisions registration granted by CITn u/s 12A(1)(ac)(vi) of IT Act, 1961. 3. The appellant crave to alter, amend and modify any ground of appeal. 4. Necessary cost be awarded to the assessee." 3.2 In ITANo.698/JPR/2024 the assessee has raised following grounds: - "1. The Ld. CIT(E) has erred on facts and in law in rejecting the application filed by the assessee in Form No. 10AB seeking approval under clause (iii) of first proviso to Section 80G(5) of IT Act, 1961 on the ground that (i) approval u/s 80G cannot be granted without registration 12AB and (ii) application filed is not within the time limit. 2. The Ld. CIT(E) has further erred on facts and in law in canceling the provisional approval granted by CIT under clause (iv) of first proviso to section 80G(5) of IT Act, 1961. 3. The appellant crave to alter, amend and modify any ground of appeal. 4. Nec....
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.... Vide reply dated 11.03.2024, the applicant has admitted that it has applied for registration under Rajasthan Gopalan Act. 1960. Thus, as on date, the applicant is not registered under Rajasthan Gopalan Act, 1960 4. The applicant has furnished ledger a/c and self-made vouchers of chara expenses not bills. Hence from the above it is clear that the activities are not verifiable and it could not be determined whether the applicant is genuinely carrying out charitable activity. Therefore, the applicant claim of registration u/s 12AB is also liable to be rejected on ground of not proving its genuineness of activity. 04. In view of above discussion applicant's application for registration u/s 12AB is liable to be rejected and thus being rejected on following grounds: - * Registration under Rajasthan Public Trust Act, 1959. * Genuineness of activities. 05. Further 12AB (1)(b)(ii)(B) of the Income Tax Act, 1961 also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier registration. Thus, it is clarified that applicant's provisional registration under clause (vi) of claus....
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....y to satisfy about the genuineness of the activities and the compliance of such requirement of any other law for the time being in force as are material for the purpose of achieving its objects. 2. The Ld. CIT(E) has observed that assessee is not registered under Rajasthan Public Trust Act, 1959 ignoring the fact that the applicable law to the assessee is Rajasthan Gaushala Act, 1960. Thus when specific Act is applicable on assessee, it is not required to get itself registered under Rajasthan Public Trust Act, 1959. The assessee has been regularly receiving the grant from Joint Commissioner Animal Husbandry Department, Ajmer (PB 46, 20 & 23) which itself shows that it is recognized under Rajasthan Gaushala Act, 1960. Therefore registration under Rajasthan Public Trust Act, 1959 cannot be insisted upon and for that reason the registration refused by L.d. CIT(E) is neither justified nor as per law. 3. So far as the genuineness of activities is concerned, the L.d. CIT(E) at Para 3.2, Pg 8-10 of its order observed that assessee has not furnished government grant received in form of ledger account, copy of agreement, grant anudan receipt and details of utilization of f....
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....ties, whichever is earlier. In the present case the assessee has already commenced its activities since it was incorporated on 31.05.2005. Words "or within six months of commencement of its activities, whichever is earlier" occurring in said sub-cl. (iii) are applicable to newly formed trust/institution. For the existing trust/institution, the time-limit for applying for regular registration is within six months of expiry of provisional registration. The assessee has filed the application on 30.09.2023 whereas the provision registration is in force till 31.03.2024. Thus the application filed is in time. For this purpose reliance is placed on the following cases:- BhamashahSundarlal Daga Charitable Trust Vs. CIT(E) (2024) 233 DTR 161 (Jodhpur) (Trib.) Words, "within six months of commencement of its activities" in sub-cl. (iii) of proviso to sec. 80G(5) apply to those trusts/institutions which have not started charitable activities at the time of obtaining provisional registration and not for those trust/institutions which have already started charitable activities before obtaining provisional registration. Since the assessee trust had received provisional approval....
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....Constitution of India and accordingly, would be ultra vires the Constitution and therefore directed to consider the applications of the petitioners as to the recognition/approval u/s 80G(5). The head note of the decision reads as under:- Deduction under s. 80G-Recognition of institution, etc. under s. 80G(5)-Validity of Circular No. 6 of 2023, dt. 24th May. 2023 regarding extension of time-On a combined reading of the earlier Circular No. 8 of 2022 and the impugned Circular No. 6 of 2023, it can be clear that the only reason which is shown for the exercise of the powers is that these trusts faced hardship since they could not apply on time-No reason whatsoever is mentioned to omit "the cl. (i) of the first proviso to sub-s. (5) of s. 80G" in respect of the new trusts applying under Form No. 10AB alone-Even though the new trusts as well as the existing trusts have no right to demand for extension of time as a matter of right, when the respondents have thought it fit to extend the time, considering the hardship, there is no material which is placed before this Court nor any reasoning is contained in the impugned order that the new trusts did not face the hardship in respect ....
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...., assessee is not required to get registered under the Rajasthan Public Trust Act 1959 [ RPT Act ] and on the other hand the assessee has without going into that dispute already made application for Registration under RPT Act and therefore, submitted that the assessee be given one chance to get cure the this aspect of the matter As regards the genuineness of the activities the assessee submitted all the details ld. CIT(E) contended that the assessee has not provided any agreement for receipt of Anudan so as decide that the activities are commercial or business in nature or not. The observation of land in the books of account appearing in 20-21 and 21-22 but not shown in 2022-23 is not correct and if given a chance on these aspect of the matter the assessee will place on record all the related documents before the ld. CIT(E). As regards the application for the recognition of the assessee trust u/s. 80G of the Act the same was rejected as the assessee is not approved u/s. 12AB of the Act. 8. Per contra, the ld. DR relied on the detailed order of the ld. CIT(E) and did not raise any specific objection to the prayer of the assessee for setting aside the order to the file of ld. CIT(....