Loading judgment…
Facts
The appellant, a Trust, applied for registration under Section 12AB of the Income Tax Act, 1961, which was rejected by the CIT(E). The grounds for rejection included not being registered under the Rajasthan Public Trust Act, 1959, and questions regarding the genuineness of its charitable activities, particularly concerning the claimed takeover of a campus by Poddar International College.
Held
The Tribunal noted that while the applicant had since registered under the Rajasthan Public Trust Act, concerns remained about the genuineness of activities and the inadvertent incorrect statement regarding the campus takeover. The Tribunal also observed that the CIT(E) did not specifically requisition details related to the campus takeover in the show-cause notices.
Key Issues
Whether the rejection of the registration application was justified on the grounds of lack of registration under the Rajasthan Public Trust Act and non-genuineness of activities, and whether proper opportunity was provided to the assessee.
Sections Cited
12 AB of the Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES, A Bench, JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM
Appellant herein, claimining itself to be a Trust, applied to Commissioner of Income Tax (Exemption) Jaipur, on 25.9.2023 for registration under section 12 AB of the Income Tax Act, 1961. 2. Said application has been rejected, and that is how, the applicant is before this Appellate Tribunal.
Learned CIT(E) rejected the application on two grounds. Firstly, because the applicant had not got itself registered under Rajasthan Public Trust Act, 1959. Secondly, because, in absence of certain documents, the applicant having not complied with show cause notice raising queries, it could not be determined whether the applicant is genuinely carrying out charitable activity.
Arguments heard. File perused.
Discussion (Registration under Rajasthan Public Trust Act, 1959)
At the outset, it may be highlighted that in the paper book presented on behalf of the appellant before this Appellate Tribunal, at page 36, copy of Registration of the applicant Trust under Rajasthan Public Trust Act has been filed. Learned AR submits that the Trust stands registered on 5.11.2024, and as such, the first objection for rejection of the applicant does not survive any more. In this regard, suffice it to say, that factum of registration of the applicant Trust is to be considered by CIT(E). (Non genuineness of activities of the applicant)
Coming to the second ground for rejection of the application, Learned CIT(E) recorded at page 9 and 10 of the impugned order the reasons to arrive at the conclusion that the activities of the applicant were found to be non-genuine.
In the impugned order, Learned CIT(E) has observed that as claimed by the applicant Poddar International College, Jaipur has taken over the campus for further running the various educational programmes; that upon taking over of the trust, the trustees were noticed to have changed and even addressed was shown to have changed; that the applicant trust was found to have been got registered with