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Facts
The assessee filed an application for registration under Section 12A(1)(ac)(iii) and 80G(5) of the Income Tax Act. The application was rejected by the Ld. CIT(E) on the grounds that sufficient documents were not filed and the activities of the society could not be verified.
Held
The Tribunal held that the Ld. CIT(E)'s rejection of the application was not sustainable, especially since the CIT(E) himself was of the belief that the assessee had commenced charitable activities. The Tribunal directed the Ld. CIT(E) to grant the registration.
Key Issues
Whether the rejection of the application for registration under Section 12A by the Ld. CIT(E) was justified based on the available evidence and the commencement of activities.
Sections Cited
12A(1)(ac)(iii), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI
Before: SHRI M BALAGANESH&
PER MADHUMITA ROY, JUDICIAL MEMBER: Both the appeals filed by the assessee are directed against the orders passed by the Learned Commissioner of Income Tax (Exemption), Chandigarh, rejecting application in Form 10AB for grant of registration under section 12A(1)(ac)(iii)B and 80G(5) of the Income Tax Act, 1961 respectively.
Heard the parties and perused the relevant materials available on record. The brief facts of the case are that an application for registration under Section 12A (1)(ac)(iii) of the Act was filed by the assessee-trust on 30.09.2024. The said application stood rejected. The Ld. CIT(E) is of the opinion that the sufficient documents have not been filed by the assessee for & 3002/Del/2025 assessing the genuineness of the activities of the Society. Neither, it could be verified from the available documents as to whether the applicant complied with the objects mentioned in the MOA or not. However, perusal of the income and expenditure account for year 31.03.2022 as submitted by the applicant, the Ld. CIT(E) is of the opinion that the Trust has been engaged in carrying out charitable activities during the Financial Year 2021-22 and thus, the commencement of the activities can be considered during the Financial Year 2021-22.
The provisional registration was granted by Ld. CIT(E) on 05.02.2024. It was further observed by the Ld. PCIT that as per the Act, post 01.10.2023, provisional registration cannot be granted/sought by a Trust or Institution which has not yet commenced its activities. It was, therefore, evident that the provisional registration have been granted as sought by the applicant as the applicant had already commenced its activities during Financial Year 2021-22. However, he ultimately rejected the application filed by the assessee filed in Form 10AB under Section 12A(1)(ac)(iii) of the Act.
Upon perusal of the matter passed by the Ld. CIT(E), it appears that once the Ld. CIT(E) was of the firm belief and concluded with the findings that the assessee had already commenced its charitable activities during Financial Year 2021- 22, rejection of the application made by the assessee under Section 12A(1)(ac)(iii) of the Act dated 30.09.2024 as considered to be not sought sustainable in the eyes of law.
& 3002/Del/2025 5. In that view of the matter, we dispose of this appeal by directing the Ld. CIT(E)with a direction upon him to grant registration to the assessee in terms of the application made under Section 12A(1)(ac)(iii) of the Act dated 30.09.2024. Consequently, the application for approval under Section 80G of the Act to be allowed by the Ld. CIT(E) with the aforesaid observations. Hence, both the appeals filed by the assessee are allowed.
In the result, both the appeals of the appellant/assessee are allowed.