TaxTMI 
TaxTMI 
2026 (9) TMI 308
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by the assessee in Form No. 10AB on 29.09.2025 under section 12A(1)(ac)(ii) of the Income-tax Act, 1961, hereinafter referred to as "the Act", seeking renewal of registration under section 12AB of the Act, was rejected. 2. The grounds raised by the assessee are reproduced as under: 1. On the facts and circumstances the Ld. CIT (Exemptions) has rejected the renewal application u/s 12A without offering an opportunity of being heard. No show cause notice was issued that our application is liable to be rejected and the rejection order has been passed without complying with statutory requirement of adequate opportunity being given to the assessee. As such the rejection order need to be treated as void and need to be cancelled ab-i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e trust constituted under the provisions of the Bombay Public Trusts Act, 1950. The stated objects of the assessee include organising free medical camps with the assistance of doctors and child specialists, providing information and education concerning nutrition and hygiene, promoting equal opportunities for women and gender equality, establishing and managing old-age homes, providing community halls and establishing and running public libraries. According to the assessee, its objects fall within the limbs of education, medical relief and relief of the poor contemplated under section 2(15) of the Act. 4. The assessee was granted provisional registration under section 12AB in Form No. 10AC dated 27.05.2021 under sub-clause (vi) of clause....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... stated that there was no change requiring a report before the Charity Commissioner, no earlier rejection or cancellation proceeding, no outstanding tax demand and no pending proceeding under any other law. Details of expenditure incurred towards its charitable objects for the relevant assessment years and a note explaining the objects and activities of the trust were also furnished. 7. The learned CIT(E) noted that the assessee had been granted registration under section 12AB in Form No. 10AC dated 08.11.2021, valid from assessment year 2022-23 to assessment year 2026-27, but had not produced any registration certificate under section 12A or section 12AA pertaining to the period prior to 01.04.2021. Although the learned CIT(E) recognise....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a registration certificate under the old regime. It was contended that this resulted in an internal inconsistency in the impugned order and that a requirement applicable to trusts registered under the erstwhile regime had wrongly been imposed upon the assessee. 10. It was further submitted that the registration in Form No. 10AC dated 08.11.2021 had remained in force and had never been cancelled or withdrawn by any competent authority. The learned CIT(E), while considering an application for renewal, could not collaterally declare the existing registration invalid. It was submitted that cancellation of registration was governed by a separate statutory procedure under section 12AB(4), which could not be substituted by proceedings for renew....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in force and the impugned order does not refer to any order cancelling or withdrawing the same. 14. The learned CIT(E) has rejected the renewal application principally on the ground that the assessee failed to furnish a certificate of registration under section 12A or section 12AA held prior to 01.04.2021. However, the assessee's consistent case is that it did not possess any registration under the old regime. The learned CIT(E) has himself observed in paragraph 3.2 that trusts which did not have any prior registration under section 12AA or approval under section 10(23C) were required to apply for provisional registration under sub-clause (vi) of clause (ac) of section 12A(1). The record demonstrates that provisional registration was, i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rust deed has been identified. No clause has been held to be contrary to law and no specific amendment required to be made has been stated. On the contrary, the assessee had furnished the trust deed and specifically brought the dissolution clause contained in clause 31 to the notice of the learned CIT(E). Therefore, the said general observation, unsupported by any specific factual finding, cannot constitute an independent ground for rejection. 18. Significantly, the learned CIT(E) has not recorded any adverse finding regarding the charitable nature of the objects of the assessee, the genuineness of its activities, the expenditure incurred towards its objects, the maintenance of accounts, the filing of returns of income, or compliance wit....