AS Ascent Welfare Society Vs CIT Exemption (ITAT Jodhpur)
The appeals were filed by the assessee trust against orders passed by the Commissioner of Income Tax (Exemption), Jaipur, rejecting applications for registration under Section 12AB and approval under Section 80G of the Income Tax Act. The rejection was based on the alleged non-genuineness of activities, primarily because the trust had not commenced full-scale operations and failed to furnish sufficient evidence of charitable activities.
The Commissioner observed that although the trust claimed to provide medical assistance to the poor, no verifiable evidence was submitted. Additionally, the trust’s primary project—a hospital—was still under construction, and therefore its activities were considered unverified and insufficient to establish genuineness. Consequently, both registration under Section 12AB and approval under Section 80G were denied.
The assessee contended that it was established with the objective of providing medical relief, particularly to economically weaker sections, which falls within the definition of “charitable purpose” under Section 2(15) of the Act. It was argued that preparatory steps, including land acquisition and infrastructure development for the hospital, had already been undertaken. The assessee further submitted that at the stage of registration under Section 12AB, the authority is required to examine only whether the objects are charitable and whether proposed activities align with those objects, not whether full-fledged activities have commenced.
