SADQUAH MEDICAL AND CHARITABLE JAMATUL MUSLIMEEN SOCIETY,MUMBAI vs. CIT EXEMPTION, PUNE , PUNE

It is the common grievance that, the appellant vide Form No.10AB made an application to the respondent Revenue u/c (iii) of section 12A(1)(ac) of the Act thereby sought regular/final registration u/s 12AB of the Act. The aforestated application by the respective impugned order was rejected and in consequence thereof provisional registration granted in each of these cases were cancelled the by the Ld. CIT(E) for his failure to arrive at positive satisfaction about genuineness of activities of the appellant owning to cogent evidences in general and non-compliance of discrepancies notified in particular.

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

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 rejections and cancellation of provisional registrations, consequently remit these 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.

In result, these three appeals are ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, orders pronounced in open court on this Wednesday 22nd day of May, 2024.