2026 (9) TMI 135

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....5-26/1087344891(1) against the rejection of application for registration u/s 12A(1)(ac)(ii) of the Act, 1961. 2. On hearing both sides we find that assessee's application for registration u/s 12A(1)(ac)(ii) of the Act filed on 29.09.2025 has been rejected by ld. Prescribed authority primarily for the reason that trust is controlled by one person and the trust does not have right to choose its leader. It is one man show of Mr. Pawan Kumar. Then allegation is that assessee is not being run as per the provisions of Act and law as TDS is not deducted. Then allegation of ld. Prescribed authority is that the financial statement revealed substantial portion of the income of the trust is reflected under the head with lease rent income and indica....

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....e trust or convert registration proceedings into assessment proceedings and the inquiry should be confined examining to charitable objects and genuineness of activities which are reflected in trust deed of the assessee. Reliance has been placed on the Coordinate Bench decision in C.J. Mangaliwala Vs. CIT(E), Chandigarh (ITA No. 2335/Del/2025 dated 10.12.2025) and Hon'ble Allahabad High Court in case of CIT Vs. Red Rose School (2007) (2) TMI 575 dated 07.02.2007 and ITAT Delhi Bench decision in Aggarwal Mitra Mangal Trust Vs. DIT, (Exemption) New Delhi (2007) 106 ITD 531 dated 29.09.2006 and Hon'ble Allahabad High Court decision in Hardayal Charitable & Educational Trust Vs. CIT-II, Agra (2013) (3) TMI 377 dated 15.03.2013. It was also conte....

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....ons in various categories of studies and for various level of studies and at the same time to provide cheaper education to marginalized section of society. 6. Now, with regard to the settler having dominant control over the trust does not seem to be a factor which can be considered at the time of grant of registration when earlier vide order dated 26.10.2016 registration u/s 12AA(1)(b)(i) of the Act was granted (copy available at page No. 22-23 of the paper book). 7. The crucial point for determination is whether the material on record establish that assessee is running educational institution in accordance with its objects and the foremost material to consider this issue is the copies of audited financial statement for AY: 2022-23 to....

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....cumentary evidences. At page No. 73-74 assessee has provided the copy of response to this notice and if we go through the same we find that corresponding to this query calling details of charitable activities in Financial Year 2024-25 and 2025-26 with the documentary evidences, assessee merely mentions that 'the school building is being used for education which is charitable activity' and attachment to this response merely mention attachment of lease agreement, settlement with Reliance Home and bills (advertisement bills). The response of the assessee and the paper book filed before us nowhere mentions as to which particular educational institution recognized from any statutory body. under any specific brand name having a verifiable strengt....