TaxTMI 
TaxTMI 
2026 (6) TMI 917
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.... for registration under section 12AB 2.1 The learned CIT(E), Bangalore erred in rejecting the application filed under section 12A(1)(ac)(ii) for registration under section 12AB of the Income Tax Act, 1961. 2.2 The learned CIT(E), Bangalore erred in not properly understanding the facts of the case, genuineness of religious activities carried on by the appellant and the written submissions along with various documentary evidences filed in reply to hearing notice issued by the CIT(E), Bangalore. 2.3 The learned CIT(E), Bangalore erred in concluding that the assessee has failed to establish a clear link between its stated objects, its actual activities, financial pattern and therefore the genuineness of the activities of the assessee cannot be established on the basis of the material available on record. 2.4 The learned CIT(E), Bangalore erred in denying registration under section 12AB the claim for registration as a charitable institution is contrary to its own stated position in view of the assessee's own admission regarding the religious nature of its activities. 2.5 The learned CIT(E), Bangalore erred in not appreciating that the assesse....
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....led an application in Form No 10AB for renewal of registration under section 12A(1)(ac)(ii) of the Act on 16.6.2025. However, the contention of the assessee society is that while filing the application for renewal in form 10AB on 16.06.2025, the assessee trust inadvertently mentioned the object of the applicant as "Relief of the Poor, Education, Medical relief & Advancement of any other objects of general public utility" instead of "Religious". The ld. CIT(E), Bengaluru thereafter, vide notice dated 4.10.2025, called for various details and documents. The AR of the assessee appeared and filed submissions on 15.10.2025. Further, vide SCN dated 27.10.2025, the CIT(E), Bangalore called upon the assessee to show cause as to why the registration under the Act should not be rejected for the reasons mentioned therein. The assessee submitted its response on 23.12.2025 with the detailed explanations to various issues raised by the ld. CIT (E) along with various documents. The ld. CIT(E), Bangalore however passed the order in Form No 10AD on 31.12.2025 and rejected the application filed in Form-10AB dated 16.06.2025 for registration u/s. 12AB of the Act with the following observations which ....
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....ed are not supported by adequate documentary evidence. Therefore, the genuineness of the activities of the assessee cannot be established on the basis of the material available on record. In view of these facts and circumstances, the application of the assessee is liable to be rejected, as the assessee has failed to satisfy the conditions prescribed for grant of registration under u/s 12AB of the act. In view of the above, the application in Form-10AB dated 16.06.2025 for registration u/s. 12AB vide section 12A(1)(ac)(ii) is therefore rejected." 4. Aggrieved by the order of the ld. CIT(E), Bangalore dated 31/12/2025, the assessee trust has filed the present appeal before this Tribunal. The assessee has also filed a paper book comprising 147 pages containing therein various documents/record/report/ notes/financials/certificates/forms/notices/List of students relied upon by the assessee in support of its case. 5. Before us, the ld. AR of the assessee contended that the ld. CIT(E) has rejected the application for extraneous or irrelevant reasons and the same is not in accordance with the provisions of section 12AB(1)(b) of the Act. Further, the ld. AR of the assessee argued that....
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....- (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),- (A) pass an order in writing registering the trust or institution for a period of five years; or (B) if he is not so satisfied, pass an order in writing,-- (I) in a case referred to in sub-clause (ii) or sub-clause (iii) or subclause (v) of clause (ac) of sub-section (1) of section 12A rejecting such application and also cancelling its registration; (II) in a case referred to in sub-clause (iv) or in item (B) of subclause (vi) of sub-section (1) of section 12A, rejecting such application, after affording a reasonable opportunity of being heard; Thus, as per the above provisions, the ld. CIT(E) has to call for such documents or information from the trust or institution or make such inqu....
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....ustees, all the movable and immovable properties and other assets now or may hereafter be held by Dharmaram College." Thus, the main objects of the assessee trust is to promote education both religious & secular and for that purpose to take over the Dharmaram College at Bannerghatta Road, Bangalore and run it as a religious, charitable and educational institution. The contentions of the assessee trust are that the objects although do make a mention of running a charitable institution, the assessee has not ventured into charity and remained as a religious residential institution for Christian priests. We also take note of the fact that the ld. CIT(E) has also noted the religious activities at para 9 of the rejection order by stating that "Without prejudice to the above, it is also relevant to note that the assessee has itself admitted in its reply that it is engaged in religious activities, by stating that it is a religious institution functioning as a seminary for priests and that its purpose is imparting religious training to priests." The objects of the assessee society are thus religious in nature. Further, we also take note of the fact that the assessee trust is also granted....
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.... letters of Rector, Administrator and others issued by the Prior General, Carmelites of Mary Immaculate. It is also not in dispute that the renewal of registration of assessee society under Foreign Contribution (Regulation) Act is issued as a Religious organization. The income and expenditure account include expenses of religious nature like expenses on upkeep of priests, students and religious functionaries, chapel maintenance, contributions to various other religious institutes etc. It is thus evident that the activities carried on by assessee society are religious in nature. We are also of the considered opinion that the ld. CIT(E) has also not brought on record any adverse material to dispute the religious activities carried on by the assessee trust. Further, we are also of the considered opinion that the financial transactions such as hostel related collections, substantial receipts from Christ University and associated institutions and its application towards the religious objects of the assessee society is the domain of the Assessing Officer to be examined during the assessment stage. It has nothing to do with the genuineness of activities of trust or institution. At the tim....