IDEAL RELIEF TRUST,NEW DELHI vs. CIT EXEMPTION, DELHI, NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCHES: C : NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI AVDHESH KUMAR MISHRAAssessment Year: NA
PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 18.03.2024 passed by the ld. Commissioner of Income Tax (Exemption) [hereinafter referred to as ‘the ld. CIT(E)]’, Delhi u/s 12AB(1)(b)(ii)(B) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) rejecting the 2
application filed by the assessee in Form 10AB for registration u/s 12AB(1)(ac)(iii) of the Act.
Heard and perused the record. The appellant, M/s Ideal Relief Trust, applied for registration under Section 12AB(l)(ac)(iii) of the Income Tax Act, 1961, claiming to be engaged in charitable activities such as education, medical relief, and community development. The case of revenue is that the ld. CIT(Exemptions) issued notices seeking documents and clarifications to verify the genuineness of the trust's activities and compliance with its stated objectives. Despite several opportunities, the appellant failed to furnish complete and satisfactory responses, including essential details like the PAN, identity proof, and confirmations for 93% of the donors, as well as substantiating evidence for donations exceeding Rs. 8.5 crore received during FY 2022-23 and FY 2023-24. Further, the trust deed and activities revealed a focus on benefiting a particular religious community, violating Explanation (d) to Section 12AB(4). The ld. CIT (Exemptions) found the appellant's submissions insufficient to establish the genuineness of its activities, the charitable nature of its objectives, or the authenticity of its receipts, leading to the rejection of its application for registration. Then it was observed that the trust’s activities and application of income predominantly benefited a particular religious community or caste, contravening Explanation (d) to sub-section (4) of Section 12AB of the Act. Thus the effective issues for consideration of this 3
Bench, in the present appeal arise out of impugned order dated 18.3.24 whereby
Ld. CIT(E) has;
(i)
Rejected regularization of the provisional registration granted u/s 12A(1)(ac)(vi) granted vide order dated
25.1.23&which regularization was sought by the appellant u/s 12A(1)(ac)(iii),on the ground that conditions of section 12AB(1)(b) are not met and;
(ii)
Canceled the provisional registration granted u/s 12A(1)(ac)(vi) vide Order dated 25.1.2023, on the ground of alleged Specified
Violation under section 12AB(4).
We find that appellant was formed on 19.07.2022 by way of written trust deed duly registered with Sub-