TaxTMI 
TaxTMI 
2026 (8) TMI 1651
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.....01.2026, furnished a detailed submission and explained the nature of activities of the assessee- Trust, including copy of Trust Deed, financial statements for the financial years 2022-23 and 2023-24, copy of income tax returns for the assessment years 2022-23 to 2025-26, details of various proceedings before the Assessing Officer were furnished. However, it is submitted by the learned counsel that the application filed on 29.09.2025 in Form 10AB u/s 12A(1)(ac)(ii) seeking renewal of registration u/s 12AB was denied, observing that no activity towards the stated charitable objects during the relevant assessment years was carried out by the assessee. The learned counsel for the assessee, placing reliance on the recent decision of Chennai Bench of the Tribunal in the case of Sir CV Raman Educational & Charitable Trust vs. CIT(E), reported in (2026) 184 taxmann.com 197 (Chennai - Trib.), submitted that non-commencement of charitable activities did not amount to specified violation under Explanation (e)(i) to section 12A(1)(ac)(iii), so as to reject registration u/s 12AB of the Act. Learned counsel for the assessee submitted that while holding so, the Tribunal followed the decision of ....
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....rried out any charitable activities during the relevant period. Consequently, the genuineness of the activities of the trust/institution cannot be established on the basis of the material placed on record. It is further noted that the applicant was granted regular registration u/s 12A for 5 years in Form 10AC dated 05.04.2022, valid from Assessment Year 2022-23 to Assessment Year 2026-27. 3.2 It is pertinent to note that, in the absence of any charitable activity or application of income towards the stated charitable objects, the genuineness of the activities of the trust/institution could not be established. Mere articulation of charitable objects in the trust deed/MoA is not sufficient to meet the statutory requirements under the Act; what is required is the actual carrying out of activities in furtherance of such objects. The continued absence of any charitable activity over multiple years clearly reflects non-implementation of the stated objects and, therefore, fails to satisfy the statutory test of genuineness as prescribed under the Income-tax Act, 1961. 4. Since registration under section 12AB is to be granted in terms of the provisions of section 12AB(1)(b....
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....ot assess whether such activities are genuine and therefore, the Commissioner is bound to refuse the registration of such a trust. 11. We have given our anxious consideration to the above submissions made by Ms. Aishwarya Bhati, learned Senior Counsel appearing for the appellant Director of Income-tax and find that it is not possible to agree with the same. The purpose of section 12AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine. In other words, the Commissioner is bound to satisfy himself that the object of the Trust are genuine and that its activities are in furtherance of the objects of the Trust, that is equally genuine. 12. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term 'activities' in the provision includes 'proposed activities'. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of th....
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....ways deny exemption u/s 11 of the Act to the Assessee. 10. Further, we find that identical issue came up for consideration before the Chennai Bench of the Tribunal in the case of Sir CV Raman Educational & Charitable Trust (supra) wherein the Tribunal, following the decision of the Hon'ble Supreme Court in the case of Ananda Social and Educational Trust (supra) held that non-commencement of charitable activities did not amount to a specified violation under Explanation (e)(i) to section 12A(1)(ac)(iii) of the Act, observing as under:- "8. It is seen that, the Ld. CIT(E) had invoked Explanation (e) (i) of Section 12A(1)(ac) (iii) of the Act and held that the activities of the assessee trust were not genuine. According to us, the Ld. CIT(E)'s interpretation of the Explanation (e)(i) of Section 12A(1)(ac) (iii) suffered from fundamental infirmity. If the activities of a charitable trust are yet to commence, it cannot be straight away alleged that the activities are not genuine. So long as the proposed activities of the assessee trust to achieve its objects are found to be charitable in nature, mere non commencement of the activities at the time of filing of applica....
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....genuine and therefore, the Commissioner is bound to refuse the registration of such a trust. 11. We have given our anxious consideration to the above submissions made by Ms. Aishwarya Bhati, learned Senior Counsel appearing for the appellant Director of Income-tax and find that it is not possible to agree with the same. The purpose of section 12AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine. In other words, the Commissioner is bound to satisfy himself that the object of the Trust are genuine and that its activities are in furtherance of the objects of the Trust, that is equally genuine. 12. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term 'activities' in the provision includes 'proposed activities'. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of the Trust. In contrast, the position wou....
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....egistration under Section 12AA of the Act is to claim exemption under Sections 10 and 11 respectively of the Act, as the case may be. Therefore, before seeking registration, it is essential that the Trust should adduce cogent material to the satisfaction of the Commissioner that the activities are genuinely charitable in nature. 15. To the aforesaid extent there is no problem. We may only say that mere registration under Section 12- AA automatically does not entitle any charitable trust to claim exemption under Sections 10 and 11 respectively of the Act, 1961. When a return is filed by any trust claiming exemption it is for the assessing officer to look into all the materials and satisfy itself whether the exemption has been claimed genuinely or not. If the assessing officer is not convinced it is always open for him to decline grant of exemption." 10. Having taken note of the provisions and the position of law, we revert back to the case before us. From the facts placed on record it is observed that, the assessee is a registered public charitable trust which was formed on 12.04.2006 with the following objects: "5. OBJECTS a. Educational - to run....