2024 (11) TMI 163

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....s of appeal. 3. The brief facts of the case are that the assessee Trust has a client for registration u/s 12AB of the Act under the new provisions of Income Tax Act, 1961. Opportunity notices were issued to the assessee, calling various details of the documents to process the application and to verify the objects and activities of the assessee. Assessee had submitted reply dated 07.06.2024 and 08.07.2024. Considering the submissions of the assessee, Ld. CIT(E) had issued a query letter on 26.06.2024 to furnish details of Income & Expenditure Account and Balance Sheet for the FY 2023-24 and FY 2024-25 along with proof of charitable activities. Another query letter dated 11.07.2024 was issued to furnish details pertaining to donations received in the FY 2023-24 with complete details of doners name, address, PAN, mobile number, amount and mode of donation. With respect to earmarked funds as discernible from the balance sheet of the assessee for the FY 2023-24, details were sought for doners, their direction letters along with supporting documents. Ld. CIT(E) also directed the assessee to furnish proof of activities for last 3 FY's along with address of the activities and proof of exp....

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....ually apply to sec 12AB(1)(b) also. ii) CIT to satisfy himself about objects of trust. None of the object held to be non-charitable/non-religious. Registration could not be denied. Trust deed is placed at PN 51 to 70 of PB. Objects at PN 55 & 57 of PB. Reliance on: * Shaheed Nand Kumar Patel Vishwavidyalaya vs CIT in TAXC No. 187 of 2024 dc. 09.09.2024 * CIT vs Chhattisgarh Urology Society (2018) 303 CTR 299 (Chhattisgarh), PN 92 to 95 of PB, relevant finding at PN 95 of PB, para no. 11. * Pragatisheel Chhattisgarh Satnami vs. CIT(E) in ITA no. 106/RPR/2018 vide order cit. 21.09.2022, PN 104 to I l l of PB, relevant finding at PN 109 of PB, para no. 8. * Shree Vimalnath Jain Shwetamber Mandir Trust vs CIT in ITA no. 50/RPR/2018, cit. 16.01.2019, PN 96 to 103 of PB, relevant finding at PN 100 of PB, para no. 5. * PN 97 of PB, there was denial of registration also for the reason that donations were received in cash and details of donors not mentioned in receipt book. * Swayam Sidhha Foundation Society vs CIT in ITA no. 93 & 312/RPR/2023 dated 22.01.2024, relevant finding at, para no. 10. * CIT vs Vijay Vargiya Vani Charitable Trust (2014) 369 ITR 360 (Raj.), relevant ....

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....stage of grant of registration. Regarding proof of expenses, sample bill of expenses were submitted, though the verification of expenses is not within the scope of powers of Ld. CIT(E) at the stage of grant of registration. It is the submission that details of earmarked funds and direction letters of the doners were also submitted vide letter dated 18.07.2024. It was the submission that in absence of any further queries raised by the Ld. CIT(E), the assessee was not at fault to submit any further documents. Ld. AR placed his reliance on various judicial pronouncements as referred to in his submissions (supra). It was therefore the prayer that the Ld. CIT(E) was not justified in rejecting the application of the assessee for registration u/s 12AB of the Act. 7. On the contrary, Ld. CIT-DR vehemently supported the orders of Ld. CIT(E). 8. We have considered the rival submissions, perused the material available on record and case relied upon by the assessee. Considering the admitted facts of the present case, wherein the application of assessee for grant of registration u/s 12AB was rejected on account of non-furnishing/furnishing of incomplete compliance, which are not to the satisf....

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....mplete information about the doners. Since the genuineness of activities and conduct of the assessee society towards its objects is not dislodged by the revenue with any plausible reason or reasonable explanation to doubt the same, we are of the considered opinion that the assessee society cannot be deprived of from their eligibility to obtain registration as a charitable institution under the provisions of section 12AB of the Act, only for the reason that the certain details of donation received could not be furnished by them. Since, in order to check the genuineness of donations received further details are furnished by the society u/r 29 as additional evidence before us which could not be furnished before the Ld. CIT(E), therefore, we find it appropriate to restore the issue to the files of Ld. CIT(E), with directions to re-visit the application of the assessee and grant them registration u/s 12AB according to the provisions of the law. Needless to say, reasonable opportunity of being heard and liberty to furnish necessary information/explanations/documents/evidence shall be afforded to the assessee in the set aside proceedings. 9. In a similar issue qua the grant of registrati....