9911796707
TMI Blog2023 (9) TMI 1511X X X X Extracts X X X X X X X X Extracts X X X X ..... That on the facts and circumstances of the case and in the Law, the CIT (Exemptions) has grossly erred in denying/rejecting registration to the assessee u/s 12AB of the Income Tax Act, 1961 (the Act) as claimed. 2. That the learned CIT has erred in law and on facts in not granting a reasonable opportunity of hearing and has thus violated the laws of natural justice. 3 That the Learned CIT erred in relying on the case laws which are distinguishable and not at all applicable to the facts of the case of the assessee while denying registration to the assessee. 4. That the observation of Learned CIT that the assessee has not incurred on charitable activities as per object mentioned in the Trust Deed is totally incorrect and improper. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous Assessment Years have been filed along with Certificate under section 12A of the Act dated 3.7.2000. 3. Now, in accordance with the new provisions of the Act, the assessee was required to file an application for registration of the trust under section 12AB of the Act in form No. 10AB in terms of Rule 17A of the Income Tax Rules, 1961. The applicant- assessee-trust filed form No. 10AB on 28.9.2022. Thereafter, a notice was issued by ld. CIT (Exemptions) to the applicant- assessee requiring the assessee to submit the details of note and activities of the trust during the last three years till 30.6.2022 and a note specifying the main area of charitable/religious activities, etc. In response, the assessee filed a detailed submission before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs 1,32,13,386/- have been incurred but not related to charitable object of the trust. Assessee trust earn income from sale of agriculture products and expenses are incurred on donation, administration, audit fee, bank charges, photography etc. but not related to the object mentioned in the trust deed. Therefore, activities of assesse trust not found genuine. Assessee failed to file supporting documentary evidences with regard to charitable activities as per object of the trust. Therefore no verification of the object as per the trust deed with the activities carried out if any could be made. Thus the genuineness of the activities does not get established. Section 12AB makes it very clear that before granting registration under this s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 2019-20, 2020-21 and 2021-22 and pointed out that most of the expenditures are for carrying out the charitable activities and administrative expenses for smooth running of the trust. He further submitted that all the administrative expenses have been incurred for achieving the main objects of the trust only. The allegation of the ld. CIT (Exemptions) that the assessee has not filed voluminous documentary evidence is incorrect. It is evident from the record that the assessee had filed voluminous documentary evidence containing the details of each and every expense as well as reply to all the queries raised by the ld. CIT (Exemptions). 6. On the other hand, the ld. CIT (D.R.) strongly relied upon the order of the ld. CIT (Exemptions) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture incurred were not for charitable purposes. In the present proceedings, the ld. CIT (Exemptions), without examining the records, has simply drawn a conclusion that in financial year 2020-21, an expenditure to the tune of Rs. 1,32,13,386/- does not relate to charitable work. On a perusal of the Income and Expenditure account for the year ending on 31.3.2021, we find that under the income side, the assessee had shown total income of Rs. 4,06,81,896/- and total expenditure incurred was of Rs. 1,32,13,386/- and excess of income over expenditure had also been disclosed, How can the entire expenditure have been held to be for non-charitable activities. On a perusal of the nature of expenditure, it is seen that it is divided under various hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been held to be incurred for carrying out the charitable activities, then how these expenditures can be held to be not for charitable purpose or carrying out charitable activities. 9. The ld. CIT (Exemptions) has not considered the details which were filed along with replies to various show cause notices, in which all these aspects have duly been explained. Thus, the finding and observation of the ld. CIT (Exemptions) is set aside. Accordingly, we direct the ld. CIT (Exemptions) to grant registration to the assessee-trust under section 12AB of the Act. 10. The ld. CIT has cited the judgment of the Hon'ble Supreme Court in the case of CIT vs. Dawoodi Bohara Jamat, 364 ITR 31 (SC). We are unable to understand as to why the ld. CIT has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
