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TMI Blog2023 (9) TMI 1511X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust, for which registration was granted earlier. Once the similar nature of activities have been accepted in the past and also exactly similar nature of expenditures have 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. 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. As decided in Dawoodi Bohara Jamat [ 2014 (3) TMI 652 - SUPREME COURT] if the assessee-trust is formed with both religious and charitable objects, the claim for registration under section 12AA of the Act cannot be denied and only in cases where the objects are carried out purely for the benefit of a particular religious community or caste, it can be denied. Here in this case, there is no finding that the activities of the trust have been carried out for a particular relig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the CIT, Varanasi and the same was granted vide Certificate dated 3.7.2000. Thereafter, assessments were completed under section 143(3) of the Act giving benefit of the provisions of section 11 of the Act and it continued to hold registration under section 12A of the Act and in all the assessments, it was found that the assessee was carrying out the activities as per the objects of the trust and at no point of time, it was ever found that the activities of the assessee-trust are not genuine or are not in accordance with the objects of the trust. Before us, certain assessment orders passed under section 143(3) of the Act for various 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in consonance with the object of the trust or institution. Reliance in this regard is also placed on the judgment delivered by the Humble Supreme court in the case of commissioner of Income Tax, Ujjain Vs Dawoodi Bohara Jamat Civil appeal no 2492 of 2014. 6. As discussed above, the applicant has failed to file documentary evidences to enable me to satisfy about the, genuineness of its charitable activities and to verify these activities are in consonance with its objects and also. 7, Considering to the above facts, I am unable to arrive at the satisfaction about the charitable nature of activities. Hence, the application filed in Form No. 10AB for the registration u/s. 12AB of the I.T. Act, 1961, is hereby rejected. However, no adverse inference is drawn against the assesse, and provisional registration granted u/s 12AB dated 27.05.2021 No. AAAATM8310ME20206is held to be valid. 5. Before us, the ld. Counsel for the Assessee, giving the entire background of the activities of the trust since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also a matter of fact that neither the objects have been changed nor the activities of the trust have been found to be non-genuine or it has been found that the expenditure 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 heads, i.e. expenditure related to medical, expenditure related to poor, expenditure related to charity and expenditure related to administration. Under these heads, various expenditures have been shown. None of these expenditures can be said to be not for carrying out activities as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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