DARBAR SACHKHAND SAHEB CHARITABLE TRUST,KOLHAPUR vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

आदेश / ORDER

PER R.S.SYAL,VP :

These two appeals are directed against the separate orders

passed by the CIT(Exemptions), Pune on 30-03-2023. The first

order is against the denial of Registration u/s.12AB of the

Income-tax Act, 1961 (hereinafter also called `the Act’) and the

second order is against denial of approval u/s.80G. For the sake

of convenience, these two appeals are clubbed and are being

disposed of by this consolidated order.

order denying registration u/s.12AB are that the assessee was set

2 ITA Nos.444 & 445/PUN/2023 Darbar Sachkhand Saheb Charitable Trust

up by Trust Deed dt. 07-10-2021, which was registered by the

Charity Commissioner on 10-03-2022. The assessee applied for

provisional registration on 31-03-2022, which was granted vide

order dt. 07-04-2022. Thereafter, the assessee applied for final

registration vide its application in Form 10AB on 30-09-2022.

The ld. CIT(E) noted that the assessee did not furnish proper

evidence in support of its reply and whatever was furnished was

cryptic, inadequate and non-verifiable. That is how, he refused to

grant registration thereby rejecting the assessee’s provisional

registration granted on 07-04-2022. Aggrieved thereby, the

assessee has come up in appeal before the Tribunal.

relevant material on record, it is seen that the ld. CIT(E) required

the assessee to furnish necessary details by issuing notice dated

09-01-2023. The information/details called for were furnished by

the assessee. On verification of the details, the ld. CIT(E) issued

another notice on 07-03-2023 pointing out certain discrepancies

and called for further details. The assessee replied to such notice

vide its letter dated 14-03-2023 by submitting a Note on the

activities of Trust, being, Teaching Spirituality and Good manners

to children on every Sunday; donation of food to the needy people

3 ITA Nos.444 & 445/PUN/2023 Darbar Sachkhand Saheb Charitable Trust

on the occasion of Mahasivaratri; donating books to Backward

class Girls school; and providing food and other necessities to

various poor people and handicap students. In support of such

activities, the assessee also furnished necessary photographs.

Copy of the assessee’s reply dt. 14-03-2023 along with the

necessary photographs has been placed at pages 52 onwards of

the paper book. At this stage, it is pertinent to mention that the

assessee was granted provisional registration only on 07-04-2022

and the details of whatever little activities it carried out from that

date till the requirement by the ld. CIT(E), vide his notice

dt. 07-03-2023, were duly furnished along with necessary

photographs. The registration was denied by observing that “the

assessee failed to comply with the provisions of section

12AB(1)(b)(i) of the Income Tax Act, 1961 and hence, the

undersigned is unable to draw any satisfactory conclusion about

genuineness of the activities of the assessee and has left no

alternative but to reject the application”. The prescription of

section 12AB(1)(b)(i) is that where the application is made

under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-

clause (v) of the said clause, the CIT(E) may call for such

documents or information from the trust or institution or make

4 ITA Nos.444 & 445/PUN/2023 Darbar Sachkhand Saheb Charitable Trust

such inquiries as he thinks necessary in order to satisfy himself

about— (A) the genuineness of activities of the trust or

institution; and (B) the compliance of such requirements of any

other law for the time being in force by the trust or institution as

are material for the purpose of achieving its objects. Having seen

all the documents furnished by the assessee as called for by him,

the ld. CIT(E) failed to point out anything adverse either against

the genuineness of the activities of the trust or the compliance of

other laws. In our considered opinion, when the Trust Deed was

there before the ld. CIT(E) and the assessee furnished all the

necessary details of the activities carried out up to the stipulated

date, there was no reason for the ld. CIT(E) to deny the benefit of

registration u/s.12AB without specifically pointing out the non-

fulfillment of the requisite condition(s) for the grant of

registration. We, therefore, overturn the impugned order and

direct to grant the registration u/s.12AB of the Act.

The ld. CIT(E) has given the same reasons for denial of approval

u/s.80G(5) as were given in his order rejecting the grant of

registration u/s.12AB. Following the view taken hereinabove in

5 ITA Nos.444 & 445/PUN/2023 Darbar Sachkhand Saheb Charitable Trust

the context of appeal against registration u/s.12AB, we overturn

the impugned order and direct to grant approval u/s.80G of the

Act.

Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 22nd June, 2023 सतीश आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The Respondent 2. 3. DR, ITAT, ‘A’ Bench, Pune गाड� फाईल / Guard file. 4.

आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA Nos.444 & 445/PUN/2023 Darbar Sachkhand Saheb Charitable Trust

Date 1. Draft dictated on 21-06-2023 Sr.PS 2. Draft placed before author 21-06-2023 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *