DCIT, NEW DELHI vs. M/S. BPTP INTERNATIONAL TRADE CENTRE LTD., NEW DELHI

Date of hearing 29.05.2025 Date of 04.06.2025 pronouncement ORDER

PER SUDHIR KUMAR JM:

2. The assessee has raised following grounds of appeal :

1. That having regard to the facts and circumstances of the case, Ld. CIT(E) has erred in law and on facts in rejecting the registration as well as provisional registration u/s. 12A (1)(ac)(iii) and 12A (1) (a) (vi) respectively vide order dated 30.05.2024 and that too without appreciating the facts and circumstances of the case and in violation of 3 principles of natural justice and by recording the incorrect facts and findings.

2. That in any view of the matter and in any case, action of the Ld. CIT(E) in rejecting the registration as well as provisional registration u/s.12A(1)(ac)(iii) and 12A (1)(a)(vi) respectively vide order dated 30.05.2024, is bad in law and against the facts and circumstances of the case and is contrary to the principles of natural justice as the impugned order has been passed without granting adequate opportunity of hearing and by recording incorrect facts and findings.

at the time of hearing and all the above grounds are without prejudice to each other.

3. The Ld. Counsel for the assessee, at the outset submits that the Ld.CIT(E) is not justified rejecting the registration u/s 12A and 80G of the Act observing that certain details were not filed by the assessee. Ld. Counsel for the assessee has submitted that all the necessary details were filed before the Ld. CIT( E) to prove the genuineness of the 4 objects and activities of the assessee. Ld. Counsel submits that at the stage of granting registration one has to be seen whether the assessee trust was established for charitable purpose and secondly the activities of the trust are genuine. These two conditions are satisfied by the assessee and therefore the Ld. CIT( E) is not justified in rejecting on the ground that some of the details were not furnished by the assessee though all the details were before the Ld. CIT( E). In the support of the contention the assessee has filed the paper book containing page no 1 to 343. He also submitted that the case is squarely covered from the Judgement of the Co-ordinate Delhi Bench passed in & 3190 /Del/ 2024 Model Village Trust v. CIT Exemption. In this case the coordinate bench held as under: “7. Perusal of the above details suggests that the assessee had filed all the necessary details required by the Ld. CIT(E). Confirmation of donation exceeding Rs.50,000/- were filed, details of contractors engaged with the trust, agreements entered into various contractors for construction of low cost house under Model Village were filed activities and the objects of the trust and confirmation letter of donation of Rs.

5 1 lakh or more etc. and also the brief summary of activities carried out by the trust were filed. Therefore the assessee had filed all the necessary details to prove the genuineness of the activities and charitable objects of the assessee. The Ld. CIT(E) did not make any comments on the genuineness of the objects of the trust. The registration u/s 12A as well as 80G was denied only for the reason that certain details were not furnished by the assessee. As held by various High Courts while granting registration u/s 12A one has to see whether the objects of the trust are charitable and the activities of the trust are genuine. The voluminous evidences furnished by the assessee proves that the assessee is a charitable trust and the activities carried on by the assessee are genuine. The queries raised and details required by the Ld. CIT(E) were all subject matter of verification by the Assessing Officer while completing the assessment. Therefore, since the genuineness of the objects of the trust and the activities of the trust were not in doubted by the Ld. CIT(E) he should not have rejected the registration u/s 12A as well as 80G of the Act on the 6 ground that certain details were not furnished by the assessee which otherwise all the details were in fact furnished by the assessee. Thus, we direct the Ld. CIT(E) to restore the provisional registration granted to the assessee u/s.12A and also direct to grant registration u/s.12A as well as 80G to the assessee trust”.

4. The Ld. Counsel for the assessee further submitted the detailed submission as under:

11 6. We have heard the rival submission and perused the material available on record. The Ld. CIT(E) rejected the registration u/s 12 A and also 80G observing as under: 4. From the perusal of submissions/ details, the following points/ issues have been noted :- 1. from the examination of Income & Expenditure account of assessee for AY 2021-22. 2022-23 & 2023-24, it is noted that the assessee has received following amount of donation during the last three years :- S.No. A.Y Amount Amount Total received in received (Amount) cash through cheque/ on line transfer 1 2020-21 3,45,000/- 1,00,000 4,45,000/- 2 2022-23 20,90,850/- 11,16,153/- 32,07,003/- 3 2023-24 45,70,500/- 40,57,033/- 86,27,533/- 12 It is clear from the above that the assessee has received mostly donation in cash from donors claimed to be of kerala. The address of donors are incomplete, i.e. does not have House Number.

1. The assessee has not submitted narration of credit/debit entry above 10,000/- in the bank account as required vide letter dated 17.01.2024 for verification of amount received and paid by the assessee.

5. The assessee has not filed details of beneficiaries of charitable activities claimed to be of educational awareness Menstrual Hygiene, One teacher School, Hunger Relief project, Sanitation programme etc. claimed in Asstt. Year 2023-24 and malnutrition free village programme in AY 2022-23.

5. In the light of above facts, the assessee has failed to file the necessary details/ evidence in support of genuineness of activities claimed to be carried out. Therefore, the present application filed in Form 10AB for grant of registration u/s.12A (1)(ac) (iii) is hereby rejected.

14 6. Since, the application filed in Form 10AB for grant of registration u/s.12A (1)(ac)(iii) is rejected, the provisional registration granted vide order dated 01.10.2021 having unique Registration No. AAGTM6481KE20218 issued for the period from AY 2022-23 to 2024-25 is also cancelled.

15 were all subject of verification by the Assessing officer while completing the assessment. The Ld. CIT( E) should not have rejected the registration u/s 12A as well as 80G of the Act on the ground that certain details were not furnished by the assessee, while all the details were furnished by the assessee. Thus, we direct the Ld. CIT(E) to restore the provisional registration granted to the assessee u/s 12 A of the Act and also direct to grant registration u/s 12 A as well as of the Act to the assessee trust.