2025 (12) TMI 523

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....f the Income Tax Act, 1961 (hereinafter referred to as the "Act"). 2. The orders of the authorities below reveal that the assessee had been granted provisional registration in Form 10AC on 25.10.2022 from A.Y. 2023-24 to A.Y. 2025-26. The assessee was an old trust incorporated on 14th October, 1996 registered with the Assistant Charity Commissioner, Surat. Subsequent to grant of provisional registration, the assessee filed an application in Form 10AB seeking final registration u/s. 12A of the Act. However, the same was rejected by the Ld. CIT(E) noting that no expenditure had been incurred by the assessee trust on its objects and as a consequence, he concluded that the assessee trust was not carrying out any activities towards its charit....

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....3/2023. Whenever after 3 to 4 years, we get a reasonable amount from interest, we can spend amount on object of the Trust. This is small trust established for noble cause and we are in search for donation to our trust, so that expenditure can be incurred on the object of the Trust. Since there are very small income we could not spent amount on specific object of the Trust. We have not spent amount on the object of the trust due to non-availability of funds at the same time we have not violated provisions of Income Tax Act or Bombay Public Trust Act-1950." 4. The Ld. Counsel for the assessee contended that the mere fact that no activities were carried out by the assessee trust could not be a reason for denial of grant of registration and ....

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.... and evidences. This is not disputed by the authorities below. Further, we have noted that the Hon'ble Apex Court has in the case of International Health Care Education and Research Institute (supra)held that the carrying on activity by a trust is not pre-requisite for grant of approval of registration u/s. 12A of the Act and if a trust is not carrying out any activity it would suffice if the objects of the trusts are examined to see whether they are charitable in nature as defined in law. The Hon'ble Apex Court noted that though the purpose of seeking registration u/s. 12A of the Act is to claim exemption u/s.11 and, therefore, before seeking registration it is essential that the trust must adduce cogent material to the satisfaction of the....