2026 (3) TMI 67

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....2026: "i. Whether in the facts of the present case, the tribunal was justified in directing the CIT Exemption to grant registration under Section 12AB and Section 80G of the Act of 1961 or it should have remanded the matter back to the CIT Exemption?" 2. Mr. Gaurav Gupta, learned Senior Standing Counsel for the appellant firstly invited the Court's attention towards the observation made by Commissioner of Income Tax (Exemption), Delhi (hereinafter referred to as 'the Commissioner') in para nos.1 to 7 of the order dated 26.06.2024 and pointed out that specific queries were raised on 22.02.2024 and subsequently on 08.03.2024 to produce relevant record, but the respondent/Trust chose not to produce the same and contended th....

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.... called for. 7. A simple look at para nos.1 to 7 of the order of the Commissioner dated 26.06.2024 reveals that multiple opportunities were granted to the respondent/Trust and though various letters/notices were sent but no document was furnished before him, for the reasons best known to the respondent/Trust. Hence, rejection of respondent's application for seeking registration under Section 12AB and 80G of the Act of 1961, did not suffer from any infirmity, as he could not have allowed the same without the requisite information and scrutiny. 8. Surprisingly, while hearing the appeal, the Tribunal recorded that the respondent/Trust has produced various documents, which show that the activities of the Trust are genuine. A view has been....

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....stration for 5 years while Section 12AB(1)(c) is meant to give Provisional Registration for a period of 3 years. It will not be out of context to reproduce relevant part of Sections 12AB(1) and 12A of the Act of 1961 so as to make a comparative analysis:   FRESH REGISTRATION [FOR 5 YEARS] PROVISIONAL REGISTRATION [FOR 3 YEARS] Application Application under Section 12A(1)(ac)(iii) [as applicable in the present case]: ...(iii) where the trust or institution has been provisionally registered under section 12AB [or provisionally approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10], at least six months prior to expiry of period of the provisional regis....

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....rom the assessment year from which the registration is sought,]...... 13. In the case in hands, the application was filed by the Respondent under Section 12A(1)(ac)(iii) which is covered under Section 12AB(1)(b) of the Act of 1961. Hence, the Tribunal was required to undertake the requisite inquiry and then record a finding about genuineness of activities of the respondent/Trust so also regarding the compliance under other laws to be made by the respondent/Trust in order to achieve its objects. And since such finding has not been recorded by the Tribunal and a sweeping direction granting registration under Section 12AB and 80G of the Act of 1961 has been given, the order impugned cannot be sustained. 14. That apart, when it comes to r....