TRIVANDRUM AGENDA TASK FORCE,TRIVANDRUM vs. CIT EXEMPTION , KOCHI

Brief facts of the case are that the appellant is a trust registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955. It is founded with the objects of implementation of development projects in and around Trivandrum Agenda Task Force Thiruvananthapuram city by working closely in association with the Government of Kerala, Airport Authority of India, Regulatory bodies, etc. as contemplated u/s. 2(15) of the Income Tax Act, 1961 (the Act) for the advancement of general public utility. The appellant was originally granted registration u/s. 12A of the Act in 2023 vide order dated 24.07.2023. Subsequently the appellant applied for new registration in 12AB on 19.03.2021. It was granted registration vide order dated 27.05.2023 for a period of 3 years. Subsequently, the appellant an application in Form 10AB u/s. 12A(1)(ac)(iii) of the Act. The same came to be rejected by the learned Commissioner of Income Tax (Exemption) by holding that the appellant is engaged in political activities which does not come under the Charitable Act as defined in section 2(15) of the Act.

Being aggrieved, the appellant is in appeal before us in the present appeal.

It is submitted that the main object for which the appellant trust was formed is for the development of capital city of Thiruvananthapuram. Therefore, it is submitted that the amount spent by the appellant trust in popularization of Trivandrum Development Agenda falls under the limb of advancement of any other object as defined u/s. 2(15) of the Act. Further it is submitted that there were no specific violations as per the Explanation inserted to section 12AB (10) of the Act warranting cancellation of registration u/s. 12A of the Act. It is submitted that the Trivandrum Agenda Task Force Commissioner of Income Tax (Exemption) has not mentioned occurring of any of the specific violations as specified u/s. 12AB of the Act. Thus, he submitted that rejection of registration u/s. 12AB is bad in law.

On the other hand, the CIT-DR seriously opposed the above submission and submitted that, as pointed out by the Commissioner of Income Tax (Exemption) the appellant is engaged in political activities and canvassed for a particular candidate in the elections. Therefore, the Commissioner of Income Tax (Exemption) was justified in rejecting the application for registration u/s. 12A(1)(ac)(iii) of the Act.

We have heard the rival contentions and perused the material available on record. The issue in the present appeal is whether the Commissioner of Income Tax (Exemption) was justified in rejecting granting of registration u/s. 12AB of the Act. It is settled position of law that at the time of granting of registration, the Commissioner of Income Tax (Exemption) is only expected to reach the conclusion as to whether the applicant trust is a charitable trust or not based on the objects of the trust for which it was formed. It is not a disputed fact that one of the objects of the trust was, as pointed out by the Commissioner of Income Tax (Exemption) , is canvassing for a particular candidate in elections, which is nothing but indulging in political activity which does not tantamount to charitable activity. The appellant had not brought on record any material to prove that Trivandrum Agenda Task Force all the other activities of the trust are charitable in nature. In the circumstances, we uphold the order passed by the Commissioner of Income Tax (Exemption).

In the result, appeal filed by the assessee stands dismissed.