SHREE MARUTIDEO SARVAJANIK TRUST,SATARA vs. COMMISSIONER OF INCOME TAX, EXEMPTION, PUNE, PUNE

The Ld. CIT (Exemption), Pune failed to appreciate that when the date of Trust deed mentioned in Form 10A was of 20.09.2000 and the registration u/s 12AA was granted on 03.04.2002 so there cannot be any modification on 20.09.2000 after registration of trust u/s 12AA. 4. The Ld. CIT (Exemption), Pune ought to have communicated the notices through e-mail or any other mode to make sure the service on Appellant Trust instead of just putting the notices on the e-filing portal. 5. The Ld. CIT (Exemption), Pune should not have taken the benefit of apparent mistake made by the Appellant Trust in filing the application under wrong provision of the act and ought to have not cancelled the registration u/s 12AA. 6. The order of CIT (Exemption), Pune u/s 12AA( 1 )(b)(ii) may please be set aside and existing registration u/s 12AA as per certificate dated 03.04.2002 may please be restored. 7. The appellant crave to add, delete, amend, alter or replace any of the above grounds as and when advised.” 2. At the outset of hearing, the ld.Authorised Representative (ld.AR) for the assessee requested the bench to provide one more opportunity to submit objects and activities in a way to prove the genuineness of the Trust before the ld.CIT(E).

On the other hand, the ld.Departmental Representative(ld.DR) for the Revenue did not object to the request of the assessee.

We have heard both the parties. The ld.CIT(E) has observed in the order that the assessee had not produced the relevant documents which were called by the ld.CIT(E). The Hon’ble Supreme Court in the case of Ananda Social & Education Trust vs. CIT [2020] 114 taxmann.com 693 (SC) has observed as under :

Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term ‘activities; in the provision includes ‘proposed activities’. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of the Trust. Similarly, the situation would be different where the trust has before applying for registration found to have under taken activities contrary to the objects of the Trust.”

Thus, the ld.CIT(E) is bound to satisfy himself about the genuineness of the objects of the trust and activities of the trust. Since in this case the assessee has failed to file the documents, the ld.CIT(E) could not verify genuineness of the objects and activities of the Trust. Therefore, in the interest of justice, it is set-aside to ld.CIT(E) for denovo adjudication. The assessee is directed to file all the relevant documents before the ld.CIT(E). The ld.CIT(E) shall give the opportunity of being heard to the assessee. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.

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