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Facts
The assessee applied for registration u/s 12AB, but the CIT(E) rejected it due to the assessee receiving CSR donations without CSR registration and not providing sufficient details about its activities. The assessee claimed the omission regarding CSR registration was an oversight.
Held
The Tribunal noted that the assessee had demonstrated its registration for CSR activities with a valid registration number and that the donation was duly recorded. The assessee also undertook to provide all required information.
Key Issues
Whether the rejection of registration u/s 12AB was justified when the assessee provided proof of CSR registration and offered to comply with all requirements?
Sections Cited
253, 12AB, 12AB(1)(6)(i)(B)
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश/ O R D E R
Per Paresh M Joshi, J.M.:
This is an appeal filed by the Assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the Act for sake of brevity) before this Tribunal. The assessee is aggrieved by the order bearing Number ITBA/EXM/F/EXM 45/2024- 25/1071627225(1) dated 27.12.2024 of the Ld. CIT(E), whereby it’s application for the registration u/s 12AB of the Act is rejected
Sushila Devi Umravsingh Patel Seva Sansthan and the provisional registration granted is cancelled which is hereinafter referred to as the “impugned order”.
FACTUAL MATRIX 2.1 That the assessee had applied in the form 10AB for registration u/s 12AB under the New Provision of the Act. That a query letter dated 28.10.2024 was issued to the assessee with a request to furnish the documents/clarifications/information against 22 number of points on or before 11.11.2024.
2.2 That in response to the above notice, the assessee society submitted a reply along with some documents which were considered and placed on record.
2.3 That during the examination of the documents and information so furnished by the assessee society it was noticed at the sr. No.15 of its submission dated 10.11.2024 wherein the assessee had stated that the society is not registered under the CSR Act. However, when the list of donation was perused which was provided by the assessee, it was observed that the assessee had infact received Rs.25 lakhs on 10.04.2023 as and byway of Page 2 of 7
Sushila Devi Umravsingh Patel Seva Sansthan CSR donation from Laxmi Civil Eng, Bhopal hence it became evident that the assessee society had in fact received the CSR donation without having CSR Registration certificate which was a clear violation of CSR Rules as per MCA Notification dated 22.11.2021 which attracts violation of section 12AB(1)(6)(i)(B) of the Act by not following any other law for time being inforce and which was material for purpose of the assessee.
2.4 That further vide para 4 of letter dated 28.10.2024 the assessee was also called upon to furnish a note specifying the main area of its charitable/religious activities so carried out during the last 3 years period with the documentary proof, location of activities and photos. In response thereto the assessee only enclosed some News paper clippings. Specific details as sought were not provided with regard to the actual charitable/religious activities of last 3 years with any documentary proof, location of the activities and photos etc. too were not provided for.
2.5 The Ld. CIT(A) in view of above facts and due to non compliance of the requisite information/documents rejected
Sushila Devi Umravsingh Patel Seva Sansthan registration u/s 12AB of the Act and so also cancelled the provisional registration.
2.6 That the assessee being aggrieved by the Impugned Order has preferred the instant appeal before this Tribunal and has raised following grounds of appeal in form no.36 against the “Impugned Order” which are as follows:
“1.The order appealed against is bad-in-law, voidab- initio, barred 1 by limitation, against the principles of natural justice and fair play, illegal and therefore liable to be quashed.
2. Without prejudice, the Ld. CIT Exemption, Bhopal erred in rejecting the application filed for registration u/s 12AB without considering the documents on records and facts and circumstances of the case.
3. Without prejudice, the registration u/s 12AB ought to be granted in the facts and circumstances of the case. 4.The appellant carves leave to add, amend or modify any of the grounds of appeal.”
Record of Hearing 3.1 That the hearing in the matter took place on 25.08.2025 when the Ld. AR for and on behalf of the assessee appeared before us and placed on record of this Tribunal a paper book
Sushila Devi Umravsingh Patel Seva Sansthan containing pages 1 to 55 and a letter dated 25.02.2023 of the Registrar of companies Delhi informing the assesee that as an entity it has been registered for undertaking CSR activities and its registration no. is CSR 00048044. The Ld. AR then invited our attention to page 51 of the paper book which was list of details of donation received by the assessee society. Basis paper book page 52 it was demonstrated that on 10.04.2023 the assessee society had received a donation of Rs.25 lakh from Laxmi Civil Eng. through RTGS. Our attention was invited to PB page 6 wherein at point 15 of their reply dated 10.11.2024 it was wrongly written that they do not have CSR registration. It was urged that it was due to over sight. It was further stated by Ld. AR that they undertake to submit to the Ld. CIT(E) all reply, documents, informations basis the requisitions made by him, qua point no.3 of the impugned order. Per contra Ld. DR concurred with the submissions made by the Ld. AR and stated that it would be just and fair under these circumstances to set aside the impugned order of Ld. CIT(E) and to remand the matter back to CIT(E) on denovo basis. Stealing was then concluded.
Sushila Devi Umravsingh Patel Seva Sansthan ITA No. 105/Ind/2025
Observations & findings & conclusions 4.1 We have to decide the legality, validity and proprietary of the “impugned order” basis records of the case and the contentions canvassed before us.
4.2 We have carefully perused the records of the case.
4.3 We basis records of the case and after hearing and upon examining the contentions are of the considered opinion that the assessee society byway of ROC Delhi document dated 25.02.2023 has demonstrated before us that the assessee society is a registered entity to undertake CSR activities and have a registration no.CSR00048044. The donation of Rs.25 lakhs is duly recorded. They are undertaking before tribunal to file all the information, documents, material etc. as is required by Ld. CIT(E) with respect to its religious/charitable activities as per point 3 of the “Impugned Order”. The Ld. DR too has no serious objections to their submissions. In these facts and circumstances, we set aside the Impugned Order and remand the case back to Ld. CIT(E) on denovo basis. We direct assessee society to comply with all the Page 6 of 7
Sushila Devi Umravsingh Patel Seva Sansthan necessary and requisite requisitions so made by the Ld. CIT(E) promptly.
Order 5.1 In the premises we set aside the Impugned Order as and byway of Remand on denovo basis to CIT(E).
5.2 In result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in open court on 29.08.2025.