2025 (6) TMI 1051

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....61 were rejected. In the appeal against the rejection of application for registration u/s 12AB in ITA No.168/Hyd/2025, the assessee has raised the following grounds of appeal: 1. Ld. CIT (Exemptions); Hyderabad erred in denial of Registration to the charitable Trust U/s 12AB despite fulfilling all the conditions for grant of Registration, Vide CIT(E) order dated 9/12/2024. 2. Ld. CIT (Exemptions), Hyderabad erred in observing that no substantial activities were carried out by the charitable Trust. 3. Ld. CIT (Exemptions), Hyderabad erred in observing that the appellant violated the provisions of Sections 11 and 12 without any evidence on record. 4. Ld. CIT (Exemptions), Hyderabad failed to appreciate that....

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..../12/2024 rejected the application. 3. The learned AR of the assessee has submitted that the objects of the assessee trust are charitable in nature and also not disputed by the learned CIT (Exemption). However, the registration was denied on the ground that no substantial charitable activities are being carried out by the assessee trust which is in violation of the provisions of section 11 and 12A of the I.T. Act, 1961. The learned AR has submitted that violation of section 11 and 12 comes into picture only after the registration u/s 12AB is granted. The learned AR has further submitted that the assessee satisfied the conditions as provided in section 12AB of the I.T. Act, 1961 to show that the objects of the trust are charitable in natur....

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.... The learned AR has submitted that, in the subsequent year, the assessee has carried out the charitable activities and therefore, the assessee is entitled for registration u/s 12AB of the I.T. Act, 1961. 4. On the other hand, the learned DR has submitted that the assessee despite lapse of a considerable time has not carried out any activities in pursuance of their objects, therefore, the learned CIT (Exemption) has rightly rejected the application. He has relied upon the impugned order of the learned CIT (Exemption). 5. We have considered the rival contentions as well as the relevant material available on record. The learned CIT (Exemption) has rejected the application of the assessee for registration u/s 12AB of the Act giving the re....

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....es are genuine. In other words, the Commissioner is bound to satisfy himself that the object of the Trust are genuine and that its activities are in furtherance of the objects of the Trust, that is equally genuine. 12. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term 'activities' in the provision includes 'proposed activities'. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of the Trust. In contrast, the position would be ....

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....ussing anything which is held to be non-genuineness of the activities of the assessee. Only in the case where the assessee has already started or carried out its activities which were found to be not in line with the objects of the assessee, then the conditions as prescribed u/s 12AB can be regarded as not satisfied. Accordingly, in the facts and circumstances of the case, when the assessee has claimed to have carried out the charitable activities in the subsequent years which are required to be considered by the learned CIT (E) to satisfy himself about the genuineness of the activities carried out for achieving the objects of the Trust. Hence, the impugned order of the learned CIT (E) is set aside and the matter is remanded to the record o....