TaxTMI 
TaxTMI 
2025 (5) TMI 1868
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....in Form No.10AB on 29.01.2024 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force by the trust / institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal on 29.03.2024 requesting the assessee to upload certain information / clarification listed therein, seeking compliance by 15.04.2024. On verification of the details submitted by the assessee in response to the said notice and the documents submitted along with the application, the Ld. CIT(Exemption) noted certain discrepancies for which he issued another notice ....
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.... reproduced for ready reference: "36A(3) No trustee shall borrow moneys (whether by way of mortgage or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except with the previous sanction of the Charity Commissioner, and subject to such conditions and limitations as may be imposed by him in the interest or protection of the trust. [Provided that, the Charity Commissioner or the Joint Charity Commissioner, as the case may be, shall decide the application for borrowing money from the Bank or Financial Institution forthwith and preferably within a period of fifteen days, if the Bank or the Financial Institution has provisionally sanctioned the loan.]." Section 36A(3) of the BPT Act, 195....
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....activities the assessee has submitted few Photographs but fail to prove any charitable activities. 2.1 The Ld. CIT (Exemption) therefore concluded that the activities of the assessee trust are conducted on commercial basis and are not charitable in nature. Being dissatisfied by the charitable nature and genuineness of the activities of the trust, the Ld. CIT (Exemption) rejected the application filed by the assessee for grant of registration u/s 12A of the Act and also cancelled the provisional registration granted earlier u/s 12AB of the Act by observing as under: "7. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB....
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.... provisional registration order dated 28th May 2021, for the period for which it was granted. 3. The Appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing. 4. The Appellant prays leave to adduce such further evidence to substantiate its case, as the occasion may demand." 4. The Ld. Counsel for the assessee at the outset submitted that the application filed for grant of registration u/s 12A of the Act was rejected by the Ld. CIT (Exemption) on mainly on the grounds that - (i) the assessee has borrowed loan without the prior approval of the Charity Commissioner; (ii) details of expenses furnished by the assessee shows the name of some different trust/ inst....
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....IT (Exemption) by filing all the relevant details/ additional evidence for deciding the issue afresh. He accordingly submitted that the matter may be restored to the file of the Ld. CIT (Exemption). 5. The Ld. DR, on the other hand, strongly objected to the arguments advanced by the Ld. AR and supported the order of the Ld. CIT (Exemption). 6. We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT (Exemption) and the paper book(s) including the additional evidence filed by the Ld. AR on behalf of the assessee. It is an admitted fact that the Ld. CIT (Exemption) rejected the application for grant of registration u/s 12A of the Act for the reasons already reproduced in preceding paragraph(s). It is th....