SOCIETY FOR WELFARE OF THE AGED SICK AND THE HANDICAPPED (SWASTHA),THRISSUR vs. COMMISSIONER OF INCOME TAX(EXEMPTION), KOCHI

Per Prashant Maharishi, Vice President 1. This appeal is filed by Society for Welfare of the Aged Sick and the Handicapped (SWASTHA) (the assessee/appellant) for the assessment year 2024-25 against the order passed by the Commissioner of Income Tax (Exemption), Kochi [ld. CIT(E)] dated 26.03.2024 wherein the application filed by the assessee for registration u/s. 12A of the Income- tax Act, 1961 [the Act] in Form 10AB on 23.9.2023 was rejected for the Page 2 of 3

reason that on scrutiny of the details and documents filed by assessee, it was held by the registering authority that the trust has not commenced any activities towards its objectives till date.
2. The assessee is aggrieved with the same and has preferred the appeal.
3. We have heard the rival contentions and perused the order u/s. 12AA of the Act in Form 10AD dated 26.3.2024. 4. The brief facts show that assessee is a society registered under the Societies Registration Act, 1860 engaged in providing shelter and protection of the aged, sick and handicapped persons. The assessee is engaged in these activities for the last 18 years from FY 2010-11. Subsequently due to paucity of funds, the activities could not be continued and it has come to a halt. It was the claim of assessee that it has purchased an immovable property in FY 1994-95 as a shelter home which was running till 2011-12. Therefore, in order to augment funds, the assessee wanted to dispose the immovable property and to buy a smaller property to carry out its activities. The assessee on application in Form 10AC was granted provisional registration on 27.5.2021 which was valid for AY 2021-22 to 2023-24. Therefore, it is a case of temporary suspension of the activities of the trust. It is not a case that assessee trust has not started activities at all. It was further stated before us that the activities of the trust has been revived in FY 2023-
24. In view of the above facts, we restore the whole issue back to the file of the ld. CIT(E) with a direction to the assessee to substantiate the fact that the assessee carried out its activities for the last 18 years, but Page 3 of 3

suspended it temporarily due to paucity of funds and further recommenced it from FY 2023-24. It is for the assessee to substantiate that assessee has commenced its activities of charitable nature. The ld.
CIT(E) may verify the same and after examination of the details and giving proper opportunity of hearing to the assessee, decide the application of assessee for registration u/s. 12A of the Act. Thus, all the grounds of appeal are allowed as indicated above.
5. In the result, the appeal by the assessee is allowed for statistical purposes.
Pronounced in the open court on this 03rd day of January, 2025. ( KESHAV DUBEY )
VICE PRESIDENT

Bangalore,
Dated, the 03rd January, 2025. /Desai S Murthy /

Copy to:
1. Appellant
2. Respondent
3. Pr. CIT 4. CIT(A)
5. DR, ITAT

By order