KULLU CRAFT HERITAGE FOUNDATION,KULLU vs. COMMISSIONER OF INCOME TAX (EXEMPTION),, CHANDIGARH

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH Hybrid Hearing BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1869/CHANDI/2025 Kullu Craft Heritage Foundation CIT (Exemptions) H.No.24/43, Ward No.3, Naggar Sector-17 बनाम/ Vs. S.O. Naggar (HP) - 175130 Chandigarh - 160017 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AAKCK-8615-J (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Shri Krish Sharma (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Shri Manav Bansal (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 14-05-2026 घोषणाकीतारीख /Date of Pronouncement : 18-05-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of registration as sought by the assessee u/s 12A(1)(ac)(iii) vide impugned order dated 22-10-2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Having heard rival submissions, the appeal is disposed-off as under. 2. Upon perusal of para 3.2 of the impugned order, it could be seen that the assessee applied for provisional registration which was granted by CPC on 28-08-2024. However, it was observed by Ld. CIT(E) that the assessee had already commenced its activities at the

time of provisional registration. It was further observed that provisional registration could be granted only in case the trust had not yet commenced its activity. Therefore, the provisional registration was held to be bad-in-law. Consequently, regular registration as sought by the assessee in the present application was rejected. Aggrieved, the assessee is in further appeal before us. 3. Upon perusal of Form No.10A as placed in the paper-book, it could be seen that the assessee trust was incorporated on 01-03- 2024 and it applied for provisional registration on 19-08-2024. At that time, the assessee had corpus of only Rs.20,000/-. The provisional registration was granted to the assessee u/s 12A(1)(ac)(vi) item A on 28-08-2024 for AYs 2025-26 to 2027-28. Apparently, the assessee was not carrying out any activity at the time of provisional registration and it started with a corpus of only Rs.20,000/-. In the present application, the assessee merely stated that the assessee opened its bank account in June, 2024 and activities were started from 01-07- 2024. However, the assessee did not start its activities actually. The first donation was received only on 07-10-2024 which fact has not been considered by Ld. CIT(E). Therefore, the rejection is on wrong facts. Further, no opportunity has been given to the assessee to explain its case. On these facts, we set aside the impugned order and restore the issue of registration back to the file of Ld. CIT(E) for de novo consideration with a direction to the assessee to plead and prove its case forthwith.

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated:18-05-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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ITAT CHANDIGARH