Vriksh Be The Change Vs ITO (Exemption) (ITAT Patna)
In , the Patna Bench of the Income Tax Appellate Tribunal dismissed the appeal filed by a charitable trust against the rejection of its application for regular registration under Section 12AB of the Income Tax Act. The trust had filed Form 10AB seeking registration under Section 12A read with Section 12AB(1)(b). The Commissioner of Income Tax (Exemption) examined the trust deed and observed that the trust deed permitted application of income for the benefit of Non-Resident Indians (NRIs) and persons residing outside India. According to the Commissioner, this clause showed that the trust was not created solely for charitable purposes within India and was inconsistent with Section 11 of the Act, which permits exemption only for charitable activities within India. Consequently, the registration application was rejected.
The trust challenged the rejection before the Tribunal and also sought condonation of a delay of 738 days in filing the appeal. The Secretary of the trust filed an affidavit stating that he was pursuing higher studies outside the State and was unavailable to manage the affairs of the trust, resulting in the delay. The Tribunal accepted the explanation, relied on the Supreme Court decision in Collector, Land Acquisition vs Mst. Katiji, and condoned the delay.
