2025 (11) TMI 1136

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../s.12AB of the Income Tax Act, 1961 (in short 'the Act') and vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1071347621(1) cancelling the approval u/s.80G of the Act. ITA No.444/Bang/2025 2. In this appeal, the assessee has raised the following grounds of appeal: "1. The Order dated 18/12/2024 vide DIN ITBA/EXM/F/EXM 45/2024-25/1071347396(1) passed by the learned CIT (Exemptions) is without appreciating the factual of the documents submitted. 2. The CIT (Exemptions) has erred in passing the order without appreciating subject matter and the provisions of Income-tax Act and judicial pronouncements. 3. The CIT (Exemptions) has not considered the provision of income tax that the organisations are required to appl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of the application, the ld CIT(Exemptions) assigned the case to the JAO for verification. However, on perusal of the submissions made by the assessee, both Range head and JAO did not recommend for grant of registration for the following reasons: i) As seen from the part financial furnished, an amount of Rs. 30,000/- is debited for the year ended 31.3.2024 towards the "blanket distribution program". However, no activity is seen during the current financial year upto 31.10.2024. ii) The only major expenditure incurred by the assessee trust is towards rent paid and other minor expenditure being administrative in nature. (iii) The trust has neither furnished any bank account extract nor any proof supporting the said....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y and not quantum of expenditure which are relevant for granting registration u/s.12AB of the Act. 7. The Ld CIT DR supported the order of ld CIT(Exemptions). 8. We have heard the rival submissions and perused the materials available on record. We take a note of the fact that the assessee trust had been constituted vide deed of trust dated 11.1.2021 along with the amended trust deed dated 30.11.2022 & thus it is at the inception stage. Further we take a note of the fact that it is not a case that the assessee had not produced all the necessary documents/details as required for registration u/s.12AB of the Act. In fact the ld CIT (Exemptions) herself in para 5 of the order has categorically stated that the assessee had submitted all th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is for cancelling the registration of the assessee Trust. Therefore, we agree with the contention of ld AR of the assessee that it is only the genuineness of the activity and not substantial amount of expenditure which are relevant for granting registration u/s.12AB of the Act. In the present case, it is not in dispute that the assessee has not commenced its activity towards the attainment of its object as can be seen from the order of the ld CIT(Exemptions) that the JAO on verification of financial furnished before him observed that the assessee has incurred expenditure towards blanket distribution Program. The JAO/CIT(E) also did not find any non genuine activity carried on by the assessee Trust. 9. In these circumstances, we are of th....