SHREE SANSKAR ADAYAYAN KANYA SHIBIR PUBLIC CHARITABLE TRUST,,AHMEDABAD vs. THE PR. CIT (EXEMPTIONS), , AHMEDABAD

Aggrieved by the rejection of application for registration under s.12AA of the Act, the assessee preferred appeal before the Tribunal.

Heard both the sides on the issue. The assessee has impugned the action of the Pr.CIT(E) for exercising discretion against the assessee for registration of the applicant Trust. As stated on behalf of the assessee, the Pr.CIT(E) has denied the registration mainly on two grounds; (i) details of actual activities carried out alongwith supporting evidences in support of the claim for registration was not provided & (ii) certified copies of the Trust deed was not filed. In this regard, we notice the averments made on behalf of the assessee that the applicant Trust is created in 1981 and is registered with the competent authority under the general law. It is submitted on behalf of the assessee that none of the objects are of the religious nature, the objects are charitable and for public at large without any discrimination on the basis of castes, creed or religion. It is also the claim of the assessee that profits of the Trust are to be applied only for the object of the Trust which is irrevocable. The submission before the Pr.CIT(E) claims that Trust is arranging ‘Kanya Shibir’ or ‘Sanskar Adayayan’ activity in a small way as evidenced by the audited accounts.

From a reading of the order of the Pr.CIT(E), the registration has been mainly rejected on the ground that requisite documentary evidences were not placed to satisfy him about the genuineness of the activities and whether the activities are in consonance with its objectives.

In the circumstances, where the assessee has admittedly furnished certain details and is not grossly negligent in furnishing the information, it will be desirable that one more opportunity is granted

Consequently, we set aside the order of the Pr.CIT(E) dated 18.09.2017 and restore the issue back to the file of the Pr.CIT(E) for de novo consideration of all aspects in the light of facts involved as well as the judicial precedents rendered in the context. Needless to say, the matter shall be disposed of by the Pr.CIT(E) after granting proper opportunity to the applicant assessee in this regard.

In the result, appeal of the assessee is allowed for statistical purposes.