Shakuntala Surana Charitable Trust Vs CIT (Exemption) (ITAT Raipur)
The Income Tax Appellate Tribunal (ITAT), Raipur, considered the assessee’s appeal against the order of the Commissioner of Income Tax (Exemption), Bhopal, dated 21.03.2026 rejecting renewal of registration under Section 12A(1)(ac)(ii) of the Income Tax Act.
The dispute related to rejection of the assessee’s application filed in Form No. 10AB for renewal of registration. During the proceedings, the CIT(E) called upon the assessee to furnish documents and details for verifying its eligibility. The assessee submitted Income and Expenditure Accounts for the preceding three years, which reflected neither substantial receipts nor substantial expenditure towards its stated objects. On that basis, the CIT(E) issued a show-cause notice proposing to treat the trust as defunct. As no response was furnished to the final show-cause notice, the CIT(E) rejected the application for renewal.
Before the Tribunal, no one appeared on behalf of the assessee, though an adjournment application had been filed. The Departmental Representative did not object to remanding the matter to the CIT(E).
The Tribunal observed that a trust cannot be denied renewal of registration solely because it has not commenced or carried out substantial activities. It noted that the relevant considerations are the genuineness of the trust’s objects and compliance with applicable laws. The Tribunal further observed that the CIT(E) had not recorded findings that the trust’s objects were not exclusively charitable or religious, that its activities were not genuine, that it had engaged in non-incidental business activities or applied income for private religious purposes, or that it had failed to comply with applicable laws.
