TaxTMI 
TaxTMI 
2025 (5) TMI 2150
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....tices seeking documents and clarifications to verify the genuineness of the trust's activities and compliance with its stated objectives. Despite several opportunities, the appellant failed to furnish complete and satisfactory responses, including essential details like the PAN, identity proof, and confirmations for 93% of the donors, as well as substantiating evidence for donations exceeding Rs. 8.5 crore received during FY 2022-23 and FY 2023-24. Further, the trust deed and activities revealed a focus on benefiting a particular religious community, violating Explanation (d) to Section 12AB(4). The ld. CIT (Exemptions) found the appellant's submissions insufficient to establish the genuineness of its activities, the charitable nature of its objectives, or the authenticity of its receipts, leading to the rejection of its application for registration. Then it was observed that the trust's activities and application of income predominantly benefited a particular religious community or caste, contravening Explanation (d) to sub-section (4) of Section 12AB of the Act. Thus the effective issues for consideration of this Bench, in the present appeal arise out of impugned order da....
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.... 7.11.23, 18.1.24, 8.2.24 issued by Ld. CIT(E). 4. Ld. Counsel has heavily relied PB 124-125, the copy of appellant's letter dated 22.01.2024 clarifying that Trust is registered with sub-registrar under the Trust Act, and no special compliance of any other law was required and that it was formed for religious cum-charitable purposes and donations received were used to distribute ration kits for the poor families, financial assistance and scholar-ships to the needy and poor peoples and that Trust is religious organization and attempt has been made to get all information from the donors but getting PAN is very difficult and further, that the trust is not required to maintain PAN, Name, Address of the Donors. Reference was made to PB 125- A which are the details of donations exceeding Rs. 1 Lac and distribution of ration kits provided were filed. Then PB 128-131 is appellant's third letter dated 20.02.2024 to Ld. CIT(E) explaining that section 13(1)(b) of the Act is not applicable to religious trust or to religious cum charitable trust and further section 115BBC and the method of receipt of donations was also explained and that the donors deposit the donations directly in the bank.....
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....records for anonymous donations is legally untenable. Ld. DR has submitted that the applicant admitted to engaging in both charitable and religious activities, with some religious activities targeting a specific community. This admission substantiated the finding of a "specified violation" under the Act. Ld. DR contended that Explanation (d) to sub-section (4) of Section 12AB explicitly prohibits the application of income for the benefit of any particular religious community or caste by a trust established after the commencement of the Income Tax Act. The applicant's admission that its religious activities cater to a particular community supports the conclusion that the trust falls under the category of "specified violation." This alone disqualifies it from registration under Section 12AB. It was submitted that the lack of transparency in financial records and the applicant's inability to substantiate the sources of such significant donations raise serious concerns about compliance with the provisions of the Act, specifically Sections 11 and 12 of the Act. It was also submitted that there is absence of adequate evidence for activities claimed. According to ld. DR the applicant clai....
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....of the donors and genuineness of donations could not be proved. In this context reading of the said clause (b) of section 12AB(1) of the Act establishes at this stage what is material is to examine genuineness of the activities and compliance of other laws and objective assessment of objects of the trust. At page PB 28-33 is the activity report showing the charitable activities and at PB 124-125, 125A are the submissions about the utilization of the donations for the charitable purposes. It is sufficiently established from PB 14-27, the Trust Deed, that same has clauses showing the religious and charitable objects of the Trust. Thus as for the purpose of clause (b) of section 12AB(1) of the Act this all material was supposed to be examined by ld. CIT(E) u/s 12AB(1)(b) of the Act and give a finding if the conditions as prescribed u/s 12AB(1)(b) of the Act stand complied with regard to genuineness of the claimed religious and charitable activity. 10. As to the genuineness of donations allegedly not proved, though ld. Counsel has submitted that donations were received online and therefore, it was not possible to maintain complete details / PAN, which is also not the requirement of ....