SOCIETY FOR WELBEING AWEARNESS AND REHABILITATION LATUR,LATUR vs. CIT- EXEMPTION, PUNE, PUNE

The case was called twice; none appeared at the behest of the assessee, the absence is also not supported by any letter of adjournment, therefore with the able assistance from the Revenue we thought it fit to adjudicate the minor issue involved in the appeal ex-parte u/r 24 of ITAT-Rules, 1963. We have heard Ld. DR Mr Kesari; and subject to provisions of rule 18 of ‘ITAT Rules’, perused material placed on record.

We note that, the appellant vide Form No. 10AB dt. 24/03/2023 filed an application to the respondent under clause (iii) of section 12A(1)(ac) of the Act thereby seeking regular/final registration u/s 12AB of the Act. The appellant’s failure to annexe required documents as contemplated u/r 17A(2)(k) of IT-Rules, the Ld. CIT(E) by notice dt. 08/06/2023 accorded an opportunity to make good the deficiency of the application, the assessee supplied requisite documents. In the event of failure on the part of assessee to comply with the requirement the Ld. registering authority granted one more opportunity to the assessee vide separate notice dt. 24/07/2023; however, this notice was also remained unattended.

In absence of requisite documents, the Ld. CIT(E) was constrained to reject to grant regular registration and cancel the provisional registration granted to appellant on 02/10/2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act as he could not draw any satisfactory conclusion about genuineness of activities of the appellant and satisfaction over compliance of requirements ITAT-Pune Page 2 of 4

We note that, the statue empowers the registering authority to call any such documents or information so as to satisfy himself with twin prescriptions of section 12AB(1)(b)(i) of the Act viz; (A) genuineness of activities (B) Compliance with all applicable laws etc., and in order to draw conclusion over satisfaction the registering authority is duty bond to carry out wholesome & autonomous exercise according to nature/character of charitable purpose vis-a-vis the applicant engaged into. In arriving to conclusion over satisfaction about the genuineness of activities and compliance of applicable law, the registration proceedings is expected to vouch predominantly; (i) whether applicant is a public charitable trust established in accordance with applicable law & in operation as such [Constitution/Establishment] (iii) whether all the entries of object clause are in consonance with the ‘charitable purpose’ as defined by section 2(15) of the Act [Objects] (iv) whether there exist any implied or express provision in the constitutional & other administrative documents/policies etc., entitling any right or power to the trust/trustee carry to engage (by itself or through agent/appointees) into any activities outside the ambit of registered objects [Rights/Power] (vi) whether all the activities and operation are strictly carried out in line with the registered objects of ‘charitable in nature’ [Activity] and finally (vii) whether it is compliant of all the applicable law in ITAT-Pune Page 3 of 4

We find that, owning to absence of evidential documents and failure on the part of appellant to cure notified deficiencies constrained the Ld. CIT(E) to culminate the impugned registration proceedings without former wholesome & autonomous exercise. However, the reasons behind non- compliance as explained in each of these cases in our considered view are sufficient for setting aside the rejection and remitting these matters back to the file of registering authority for de-nova consideration which the Ld. DR could hardly object. In view hereof, without commenting on merits we set- aside the impugned rejection and cancellation of provisional registration, and consequently remit the matters back to the file of Ld. CIT(E) for de-nova consideration in accordance with law after giving three effective opportunities to the appellant assessee.

The appeal in result is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Monday, 26th day of August, 2024.