TaxTMI 
TaxTMI 
2025 (4) TMI 1785
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....ing registration one has to be seen whether the assessee trust was established for charitable purpose and secondly the activities of the trust are genuine. These two conditions are satisfied by the assessee and therefore the Ld. CIT(E) is not justified in rejecting the registration on the ground that some of the details were not furnished by the assessee though all the details were before the Ld. CIT(E). 3. Ld. Counsel further submitted a detailed submission as under: "The Appellant Trust was declared by Sh. P. K. Noufal (Settler) by way of a registered deed on 12.02, 2019 by irrevocably settling a sum of Rs. 5,000/- (PB 72-91). Initially five trustees were appointed with an option to adopt other persons as trustees by following the prescribed procedure so however that the number of trustees shall not exceed 29. There are 32 aims and objects mentioned in the deed, all of which are for development of model villages and localities, strengthen capacities and empowerment of people, promote literacy, ensure health, economic empowerment of people, promote community development etc. It is interalia provided that the income of the Trust shall be used for the objects of the trus....
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....is letter and its annexures deal with all points raised by Ld. CIT(E) in his letter dated 21.12.2023. It may be seen that detailed information was called for in respect of 17 points and point number 17 contained further 12 sub-points. This letter contains information inter-alia in respect of following important points: - (i) Note specifying main area of charitable activities along with projection for next two years (PB 43-47); (ii) Charitable purposes provided in section 2(15) and adopted in aims and objects include relief of poor, education, medical relief and advancement of general public utility (PB 64-65); (iii) Confirmation that none of the objects involves any trade, commerce or business (PB 63); (iv) Declaration that income of the appellant trust or any part thereof was never used or applied for the benefit of any person specified in Section 13(l)(c) (PB 66-67-); (v) Certificate that requirement of other laws which are essential for the purpose of achieving the objects of the trust have been complied with; (vi) Note on activities actually carried out (PB 69- 70); (vii) Justification for grant of registration, nam....
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....kh rupees and note on various activities with photographs. 3. In arriving at the conclusion that activities are not genuine, Ld. CIT(E) drew a table of donations received in three years and mentioned in paragraph no. 4 that donations are received mostly in cash. From the table, it is seen that donations are received in cash as also in cheque or by on line transfer. It is made out that address od donors are not complete as house no. is not stated. It is submitted that house nos. are not allotted. The addresses are complete, i.e., if a letter is posted at the given address, it will reach the donor. 3.1. It is further mentioned that narration of entry of Rs. 10,000/- is not furnished, although the same was called for vide notice dated 17.01.2024. It is submitted that complete bank account was furnished vide item no. 2 of letter filed on 23.01.2024 (PB 998-1041). All entries contain narrations. Therefore, there is no force in this adverse observation. 3.2. It is also mentioned that certain expenses were incurred on account of low- cost housing projects. The details of beneficiaries have been furnished but their confirmations have not been furnished. It is sub....
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....er- alia pointed out that activities have been undertaken in respect of menstrual hygiene, maternal health, vaccination in co-ordination with rural authorities, adult literacy programme, running one teacher school, student learning centre etc. Further, following details were furnished in this respect: - (i) List of beneficiaries of malnutrition programme (PB 358-362, 596-609); (ii) List of beneficiaries of adult female learning centre (PB 371, 561-566); (iii) List of beneficiaries of hunger relief (PB 567-592); (iv) List of beneficiaries of malnutrition free village programme (PB 593) (v) List of beneficiaries of sanitary Napkins sponsorship project (PB 610-722); (vi) List of beneficiaries of toilet project (PB 363- 370, 723); and (vii) one teacher school expenditure. 3.6. All these activities are real and substantive charitable activities. Therefore, it is submitted that adverse observations have been made without appreciating the details and evidence filed in the course of registration proceedings. It is further submitted that some of these points are to be seen at the time of assessment and these points do n....
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....r law applicable to appellant trust has been complied with. Therefore, the order of Ld. CIT(E) is not sustainable in law and therefore it is requested that this order may be reversed and registration may be granted. 5. In order to support the contention that Ld. CIT(E) could not have gone beyond the provisions of Section 12AB(l)(b), reliance is placed on the following cases: ● In case of CIT vs. Agricultural Produce and Market Committee [2007] 163 Taxman 359 (Bom), it has been held in Para 11 that to get registration u/s 12/12AA of the Act, the conditions required to be fulfilled are, firstly, the trust/institution must be created/ established for charitable purposes and secondly, the activities of the trust/ institution must be genuine. ● In the case of Hari Krishna Trust vs. CIT(E) [2023] 154 taxmann.com 656 (ITAT Lucknow), it has been held in Para B.l that it is well settled that there are two conjunctive tests to be considered at the time of registration u/s 12AA of the Act. Firstly, it is to be examined whether stated objects of the applicant are charitable in nature. Secondly, genuineness of the charitable activities is to be established....
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....ects of the trust and genuineness of its activities. This decision of the coordinate bench was followed. ● In the case of Har Nihal Charitable Trust vs. CIT(E), Chandigarh [2021] 131 taxmann.com 155 (ITAT Chandigarh), it has been held that after examining the issue as per order of ITAT, Ld. CIT(E) has not recorded any adverse observations in the impugned order in respect of charitable activities carried out by the appellant trust. Thus, Ld. CIT(E) ought to have granted registration to the appellant trust. ● In the case of CIT(E) vs. Nanak Chand Jain Charitable Trust [2024] 162 taxmann.com 353 (P&H), following conclusions have been drawn : (i) Income Tax Appellate Tribunal while hearing an appeal u/s 254(1) in a matter where registration u/s 12AA has been denied by the commissioner can itself pass an order directing commissioner to grant registration in case Tribunal disagrees with satisfaction of the commissioner on the basis of material already on record before the commissioner; (ii) The power of the Tribunal is co-extensive with power of commissioner u/s 12AA of the Act. However, order for registration can be issued only after recor....
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....is part of the order contained in Para 6 may also be 'reversed and the provisional registration granted for AYs 2022-23 to 2024-25 may be restored." 4. On the other hand, the Ld. DR strongly supported the orders of the CIT(E) in rejecting the registration u/s 12A as well as 80G to the assessee trust. 5. Heard rival submissions, perused the orders of the Ld. CIT(E) and the materials placed before us. The Ld. CIT(E) rejected the registration u/s 12A and also 80G observing as under: - "4. From the perusal of the submissions /details, the following points / issues have been noted: - 1. From the examination of Income & Expenditure account of the assessee for A.Y. 2021-22, 2022-23 & 2023-24, it is noted that the assessee has received following amount of donation during the last three years :- S. No A.Y Amount received in cash Amount received through Cheque/on line transfer Total(Amount) 1 2021-22 3,45,000/- 1,00,000/- 4,45,000/- 2 2022-23 20,90,850/- 11,16,153/- 32,07,003/- 3 2023-24 45,70,500/- 40,57,033/- 86,27,533/- It is clear from the above that, the assessee has received mostly donation....
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.... of application for provisional registration dated 17.09.2021 1-9 2. Copy of the order for provisional registration dated 01.10.2021 10-14 3. Copy of the application for regular registration dated 30.11.2023 15-30 4. Copy of notices dated 21.12.2023 issued by the Ld. CIT(E) 31-38 5. Copy of the replies dated 05.01.2024 filed on 15.01.2024 in response to the notices dated 21.12.2023 along with : 39-42 ● Note specifying the main area of charitable activities of the Trust and together projection plan for the next two years 43-47 ● NOC from the owner of the Premises and Proof of ownership 48-61 ● Details of office of the Trust 62 ● Undertaking that there will be no infringement to the 1st proviso to Section 2(15) 64-65 ● Declaration that no part of the income of the trust ensures directly or indirectly for the benefit of any person specified in Section 13(1)(c) 66-7 ● Confirmation that none of the objects of the trust is in the nature of trade business or commerce 68 ● Certificate that all requirements of law has been complied with which are essential for....
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....he assessee along with : 1133-1134 ● Notes on activities consisting of details of activities carried out by the trust since inception yearwise as per details, photos, bills and vouchers 1135-1162 12. Copy of reply dated 08.05.2024 filed by the assessee trust along with : 1163 ● Contractors agreement papers for low cost house constructed under Model Village 1164-1294 ● Aadhar Card if beneficiary of low cost house 1295-1307 ● Staff appointment letter 1308-1313 ● Justification of activities as per the objects of the trust 1314-1315 ● Confirmation letter of donation of 1 lakh or more 1316-1323 ● Brief summary of activities done by the organization 1324-1351 It is certified that all the items were before Ld. CIT(E) 7. Perusal of the above details suggests that the assessee had filed all the necessary details required by the Ld. CIT(E). Confirmation of donation exceeding Rs.50,000/- were filed, details of contractors engaged with the trust, agreements entered into various contractors for construction of low cost house under Model Village were filed activities and the objects of the trust....