2026 (7) TMI 1798

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....ated 23.08.2023, DIN & Notice No. ITBA/EXM/F/EXM45/2023-24/1055338382(1) challenging the order of the Ld. CIT passed in Form No. 10AB as per the grounds of appeal which is as under: "1. That the order passed by the Learned Commissioner of Income-tax (Exemption), Patna cancelling the provisional registration u/s. 12AB of the Income-tax Act, 1961 is bad in law, arbitrary, unjustified, and contrary to the facts and circumstances of the case. 2. That the Learned CIT(E) erred in cancelling the registration solely on the basis of a clause in the Trust Deed mentioning beneficiaries including NRIs and persons residing abroad, without appreciating that the objects of the Trust are purely charitable in nature and are not hit by any ....

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....t the cancellation of registration is highly disproportionate, harsh, and unjustified, especially when no adverse finding has been recorded regarding the genuineness of activities, misuse of funds, or violation of the provisions of the Income-tax Act, 1961. 9. That the Learned CIT(E) failed to appreciate that amendment or modification of a Trust Deed to align with statutory requirements is a recognized and permissible course of action, and once the objectionable clause has been deleted, there remains no basis for cancellation of registration. 10. That the order passed by the Learned CIT(E) is against the principles of natural justice, as the Appellant Trust was not afforded a fair and meaningful opportunity to explain and ....

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....lant Trust. 14. That the Appellant Trust has a strong prima facie case on merits, and the issues involved in the appeal relate to charitable registration, which has serious civil consequences affecting the very existence and functioning of the Trust. 15. That if the delay is not condoned, the Appellant Trust would suffer irreparable loss and injustice, whereas no prejudice whatsoever would be caused to the Revenue if the delay is condoned and the appeal is decided on merits. 16. That it is a settled principle of law that procedural delays should not defeat substantial justice, and the Hon'ble Courts and Tribunals have consistently held that a liberal approach should be adopted while considering applications fo....

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....ollector, Land Acquisition vs Mst. Katiji, (1987) 167 ITR 171 (SC), we condone the delay and the appeal is taking for adjudication. 4. Briefly stated the facts of the case are that the assessee filed an application in Form No. 10AB on 21.02.2023 for grant of registration under sub clause (iii) of clause (ac) of sub-section (1) of section 12A read with section 12AB(1)(b) of the Act. The assessee is a trust and it is situated at Buniyadganj, Gaya. During the course of proceedings for registration the Ld. CIT(E) issued various notices and the assessee partly replied. On going through the trust deed, the Ld. CIT(E) noted as under: "4. Therefore, it is concluded that the assessee Trust has not been created only for public of India bu....