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Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
This is an appeal preferred by the assessee Trust against the action of the Ld. Commissioner of Income Tax (Exemptions), Lucknow dated 14.02.2020, wherein he was pleased to reject the application filed by the assessee for registration u/s 12AA(1) of the Act.
The grounds of appeal of the assessee are as under: -
“1. That the Ld. Commissioner of Income Tax (Exemptions) has erred in law and on facts and circumstances of the case in refusing the application for registration u/s 12A(1) of the Income Tax Act, 1961. 2. That observations made by the Ld. CIT(Exemptions) in Para 3 of his order are misplaced and cannot be a basis for rejecting the application as the same were duly produced before the Ld. CIT(Exemptions) during the course proceedings.
Page 2 of 4 3. That the order passed by the Ld. Commissioner of Income Tax (Exemptions) refusing to grant registration u/s 12AA of the Income Tax Act, 1961 is without proper opportunity and bad in law.
4. That the Ld. Commissioner of Income Tax (Exemptions) has failed to appreciate that the appellant trust has been formed with the objects being purely of charitable nature.
5. That the order passed by the Ld. CIT(Exemptions) is against merits, circumstances and legal aspects of the case.
6. That the appellant craves leave to add, alter, amend or withdraw any or all the grounds of appeal
on or before the date of hearing.”
3. None was present on behalf of the assessee when the appeal was called out for hearing nor was any adjournment application received. However, looking into the facts of the case, we deem it appropriate to hear the appeal on merits ex-parte qua the assessee.
4. The ld. CIT (D.R.), on the other hand, has contended that the objections raised by the ld. CIT (E) in the impugned order do not stand rebutted. It has been contended that assessee has failed to produce any material to prove the activities of the assessee/trust, the ld. CIT (E) has correctly rejected the application for registration.
The Ld. CIT(E) passed this order with observation that the material submitted by the assessee are not enough to arrive at a satisfaction about of objects of the trust and the genuineness of the trust and its activities, which are essential conditions before granting of registration. Ld. CIT(E) further observed that members of the society are engaged in other Trust/society and in section 8 company but assessee has not provide the details of the trust/society and section 8 was not furnished. Further, the Ld. CIT(E) requested to produce the original bills and vouchers for verification regarding the details of the trust/society. However, the same could not be produced by the assessee society.
Page 3 of 4 Accordingly, he rejected registration 12AA(1) by passing this order by holding as under: - “3. On perusal of the submission made by the AR of applicant on various dates, it is noted that the applicant society vide point no. 22 of its submission informed that some members of the society are engaged in other Trust/society and in section 8 company. But the details of the trust/society and section 8 company was not furnished by the applicant. Further, the applicant society vide point no. 21 of this office letter dated 24-01-2020 was requested to produce original Bills and voucher for verification. However, the same couldn’t be produced by the applicant society. Hence, the genuineness of the activities claimed by the applicant remain unverified.
The Section 12AA(1)(a) of the Income-tax Act, 1961 states that “The Commissioner shall call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of the trust or institution”. Thus it becomes imperative on the part of the applicant society to provide corroborating evidences regarding the genuineness of the activities of the applicant which is mandated by law. In the absence of such satisfaction, the applicant looses its eligibility for consideration for registration u/s 12A of the Act.
5. In view of the forgoing discussion, it is seen that the applicant has not chosen to file the details required and so it is presumed that the applicant has nothing to say in this regard. Therefore, the registration u/s 12AA cannot be granted for want of required information.
6. In view of the above, it is evident that the applicant has failed to provide the sufficient material to corroborate the charitable nature of the objects and genuineness of the activities. Therefore, the applicant is not considered is eligible to registration u/s 12AA of the Income-tax Act, 1961.
7. Accordingly, the registration sought by the applicant u/s 12A(1) of the Income-tax Act, 1961 is hereby rejected.”
We have heard the Ld. Departmental Representative (“DR”) and perused the material available on record. At the outset, the Ld. DR submitted that the assessee failed to produce any material to prove the activities of the assessee/trust, the Ld. CIT (E) has correctly rejected the application for registration. Neither side has brought any material for our consideration to persuade us to take a view different from view taken by the Ld.CIT(E), therefore, the impugned order of Ld. CIT(E) is upheld and the assessee’s appeal is dismissed. However, the assessee will be at liberty to approach Page 4 of 4 this Tribunal, in accordance with law, for restoration of the appeal for disposal on merits, if the assessee advances reasonable cause for non-appearance when the appeal was called out for hearing on 23/10/2024.
In the result, the appeal of the assessee stands dismissed.
Order pronounced in the open Court on 24/10/2024.