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TMI Blog2024 (9) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... matically relying on the assessee s submissions. However, at the time of issuing permanent registration as per Section 12AB(1), it is mandatory for CIT(E) to verify genuineness of the activities of the assessee. In this case, assessee has not submitted the relevant details. Therefore, the ld.CIT(E) could not verify genuineness of the activities of the assessee. Even before this tribunal, assessee has not filed single document to prove genuineness of the activities of the assessee trust. In these facts and circumstances of the case, we agree with the ld.CIT(E) that assessee is not eligible for registration u/sec.12AB of the Act as assessee could not prove genuineness of the activities. Appeal of the assessee is dismissed. - SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER For the Assessee : None. For the Revenue : Shri Arvind Kumar CIT(DR) ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the assessee is against the order of ld. Commissioner of Income Tax(Exemption), Jaipur rejecting assessee s application for Registration u/sec.12AB of the Act. The assessee has raised the following grounds of appeal : 1. That the Ld CIT(Exemption)/A.O. has rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1950 are analogous. Thus this decision, further clarify that if an NGO is for public religious or public charitable or both purposes, registration under public trust in mandatory. Further Hon'ble Rajasthan High Court in case of Public Trust Shri Geeta Satsang Bhawanvs. Om Prakash Mr. D.C. Sharma, Civil Appeal no. 300 of 2006, has further held in para 5 that earlier requirement of minimum income and property has been done away and since 1982 onward every public trust irrespective of its income or properties need to be registered under Rajasthan Public trust Act, 1959. Further, as discussed in earlier paras, the Hon'ble Supreme Court in its para no. 64-70 of order dated 19.10.2022 in the case of M/s New Noble Education Society in civil appeal no. 3795 of 2014 has held that registration under respective public trust acts or charities act is mandatory. It is important to mention here that New Noble education society was also registered under Andhra Pradesh Societies Registration Act, 2001, and Assessee has pleaded before Hon'ble Apex Court on same ground that once registered under societies Act, no need to register under public trust act. Respective plea of assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils. The applicant has not furnished the details along with till vouchers of expenses debited in income and expenditure accounts for the last three financial years. Further, the assessee was also not submitting the details of bank account and financial statement for the last three years, Details of note on activity carried out by the applicant. The above details were sought from the applicant to determine the actual purpose/nature of expenditures made and to determine whether the impugned charitable activity had actually been done by the trust or not. Such type of verification is necessary to keep a check and balance on the actual working of the trust. Since, the applicant didn't furnish sought details, in the absence of such documents/details, the justification of impugned activity could not be derived and it is not known whether the applicant is genuinely carrying out charitable activity as per its objects. As 6 opportunities already provided, which are more than sufficient if assessee has anything in its support. Thus, it is clear that assessee is not doing activities genuinely. Hence, the applicant has failed to justify the genuineness of activities and thus falls out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is aspect are sound. The requirement of registration of every charitable institution is not optional. Aside from the fact that the consequences of non-registration are penal, which indicates the mandatory nature of the provisions of the A.P. Charities Act, such local laws provide the regulatory framework by which annual accounts, manner of choosing the governing body (in terms of the founding instrument: trust, society, etc.), acquisition and disposal of properties, etc. are constantly monitored. Entry 32 of List II of the Seventh Schedule to the Constitution reads as follows: 32. Incorporation, regulation and winding up of corporations, other than those specified in List I, and universities; unincorporated trading, literary, scientific, religious and other societies and associations; cooperative societies. By Entry 28, List III of the Seventh Schedule, the states have undoubted power to enact on the subject of charities: 28. Charities and charitable institutions, charitable and religious endowments and religious institutions. The A.P. Charities Act provides a statutory regulatory framework in regard to activities of charitable institutions in the state. Sections 72- 74 deal with s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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