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Facts
The assessee, a Charitable Trust, applied for regularization of its registration under Section 80G. During the application process, it inadvertently ticked 'Religious' as one of its activities. The CIT(E) rejected the application based on this tick mark, despite the Trust deed not mentioning religious activities and the Trust not engaging in any.
Held
The Tribunal condoned the delay in filing the appeal. It acknowledged the inadvertent mistake in ticking the 'religious' activity box and noted that the assessee had not carried out any such activities. The matter was remitted back to the CIT(E) for a fresh order.
Key Issues
Whether the CIT(E) was justified in rejecting the 80G registration application due to an inadvertent tick mark for a religious activity that was not part of the trust's objectives or operations.
Sections Cited
80G, 12AB
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Income Tax Appellate Tribunal, ‘D’ BENCH
Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL
O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order passed by ld. CIT(E) dated 28/02/2024 rejecting the assessee’s application for 80G in Form 10AB. 2. The assessee is a Charitable Trust set up on 01/08/2022 and was registered with Charity Commissioner, Greater Mumbai Region vide certificate of registration granted on 24/11/2022.
Rotary Club of Upper Kandivali Charitable Trust The assessee is also registered with the Commissioner of Income- tax (Exemptions) u/s. 12AB and holding the Registration Number: AAETR8698H24MB01. The copy of the order dated 28- 8-2024 granting the registration w/s. 12AB has been filed before us. The assessee was allowed provisional registration u/s. 80G (5)(ii) vide the certificate dated 28/2/2023. On 20/02/2024, the assessee made an application for regularizing the registration u/s. 80G(5)(ii). The application was made in Form No. 10AB. While filing this application, the assessee, through an inadvertent error ticked "Religious" as one of the activities of the assessee trust in column 5 of the Form. This was stated due to an inadvertent error while filing the Form No. 10AB. The assessee, as a matter of fact, has never carried on any religious activities. The Trust deed of the assessee in fact does not contain religious activities as one of the objects of the Trust. This was pointed out can be verified from the Objects of the Trust. Our attention was drawn on the clause No. 27 of Form No. 10AB, wherein, it is clearly stated in Clause 27(a) of the Form that the trust has not incurred any expenditure of religious nature.
The Commissioner of Income-tax (Exemptions) vide letter dated 03/08/2024 called for an explanation in relation to the "Religious" being one of the objects as mentioned in clause 5 of the Form No. 10AB. The assessee, vide its letter dated 07/08/2024, filed on 12/08/2024, submitted to the ld.CTT (E) that the objects of the trust do not include "religious" as one of the objects and that the trust does not carry any religious Rotary Club of Upper Kandivali Charitable Trust activities. The assessee also furnished the copy of the Trust Deed with this letter. The assessee also furnished few further documents viz., proof of expenses from the incorporation of the trust till 30/6/2024, year-wise bank statements, and also provisional accounts for the FY 2023-24 and also for the period from 1/4/2024 to 30/6/2024. The assessee, once again, vide letter dated 12/8/2024, filed on 27/8/2024 reiterated that the trust do not carry any religious activity and are therefore, not in violation of approval u/s. 800(5). The assessee also clarified that it even does not intend to carry any religious activity in future and the tick mark in the box of religious activity was by mistake. The assessee once again filed documentary evidences like Trust Deed, proof of expenses incurred, bank statements, payment receipts, photographs etc. for the period since incorporation of the trust till 30/6/2024. The assessee requested to pardon the unintended mistake and allow the registration w/s. 80G(5)(ii) of the Act.
However the ld. CIT (E), passed the order dated 28/8-2024 rejecting the registration u/s. 80G (5)(ii) of the Act. The order of the ld.CIT (E) was communicated to the assessee on 28/8/2024. However, the assessee had a bona-fide belief that since the rejection of registration was on account of incorrect belief about the activities of the trust, the order of the ld.CIT (E) can be corrected by way of rectification by the ld.CIT (E). The assessee accordingly, tried for the same by personal visits to the ld.CIT (E). However, the assessee was informed on 26/11/2024 that the Rotary Club of Upper Kandivali Charitable Trust power to amend the order passed is not available with the ld.CIT (E). In view of this, the assessee filed an appeal before the Hon'ble Tribunal on 05/12/2024. Accordingly, there was a delay of 39 days in filing the appeal before the Tribunal. The assessee has filed the affidavit explaining the reasons for the delay with the appeal documents.
After considering the aforesaid facts and submissions, the delay of 39 days is condoned. Since there was an inadvertent mistake by putting tick mark against the text of “religious” object, whereas assessee never carried out any such religious activities as was brought on record before the ld. CIT (E) on every occasion and also before us. Accordingly, this matter is remitted back to the file of the ld. CIT(E) to pass afresh order and after considering the documents grant certificate u/s.80G, if found in accordance with the provision of law.
In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 31st January,2025.