TaxTMI 
TaxTMI 
2026 (7) TMI 866
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....king registration under Section 12AB of the Income Tax Act, 1961 (the Act), as well as approval under Section 80G(5) of the Act. These applications were rejected by orders dated 25 March 2025. 2. Briefly facts shows that Appellant is charitable trust constituted by the registered deed dated 20th May 2022 with objects to establish and support educational and vocational institutions, grant scholarships to poor students, and conduct charitable activities including anna dasoha. Appellant filed application in form number 10 AB on 30th September 2024 seeking registration under section 12AB of the Income Tax Act, 1961. 3. The learned Commissioner of Income Tax [Exemption] Bengaluru [ CIT [Exemption]] as per order dated 25th of March 2025 in ....
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....n of the learned departmental representative. The facts clearly shows that Appellant filed an application in form number 10 AB on 30th September 2024 for registration under section 12AB of the Income Tax Act. The CIT exemption assigned the case to the jurisdictional Assessing Officer for verification. The jurisdictional Assessing Officer issued letters and notices to the Assessee. On the basis of submission made by Appellant, the range head and the jurisdictional Assessing Officer did not recommend for registration and reasons mentioned in the report were given to be that (i) on perusal of the information submitted of the financial statement as on 31st of March 2023 and 31st of March 2024 clearly shows that the Appellant has incurred small ....
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....ccounts. For one year the Appellant has disclosed the donation in the income particulars whereas in the subsequent year it removed that income portion against the corresponding year and reported in the corpus account. The copies of the income and expenditure account were also analysed by the CIT exemption and held that Assessee is repeatedly mistaking in reporting the amounts in the financial statements. He also looked at the bank statement and tabulated the credits, debits, total donations, and total expenses from there in. He held that amount of donation shown did not match with the bank statement and further similarly for the expenses made by trust there is a huge margin between the claimed expenses and the total debit entries in the ban....
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.... adequacy of the financial statements for supporting charitable activities. Upon reviewing these financial statements, it is noted that for the year ending March 31, 2023, the Assessee received Rs. 1,104,370/- in donations and spent Rs. 98,600/-; this expenditure covered salaries, groceries, gas, and fuel categorized under Anna Dasoha expenses. For the following year, ending March 31, 2024, overall expenses totaled Rs. 39,450/-, primarily administrative in nature. Therefore, the jurisdictional Assessing Officer concluded that the financial statements are not sufficiently satisfactory for conducting the trust's charitable work. 10. The learned CIT (Exemption) is certainly authorised to obtain a report from the jurisdictional Assessing Off....
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.... of violation of the principles of natural justice as well as against the provisions of the act. In view of this, the order passed by the learned CIT exemption dated 25th of March 2025 rejecting the registration application for registration under section 12AB of the act is not sustainable. Accordingly, same is set aside. 14. The learned CIT exemption is directed to grant the fresh opportunity of hearing based on the report of the jurisdictional Assessing Officer to give rebuttal, and thereafter, after application of his own mind, pass an order on its merit afresh. The Appellant is also directed to submit the necessary details on the issues raised by the jurisdictional Assessing Officer recommending refusal to give registration and the ob....