Siwanchi Oswal Jain Bhavan Trust Vs CIT (ITAT Bangalore)
ITAT Bangalore held that no material brought on record by CIT(E) to suggest that the objectives are non-charitable or that the activities undertaken are not genuine. Thus, denial of final registration under section 12AB of the Income Tax Act not justified and matter remanded back for fresh adjudication.
Facts- The assessee is public charitable trust established vide trust deed dated 1st September 2024 with the stated object to build, restore, renovate, and maintain places of worship, historical monuments, pilgrimage sites, and public places of faith and belief.
The trust initially obtained provisional registration u/s. 12A vide Form 10AC dated 30.01.2024. Subsequently, the trust filed Form 10AB on 17.04.2024 seeking regularization of registration u/s. 12AB of the Act. The application was assigned to the Jurisdictional AO (JAO) for verification. JAO recommended not to grant the approval of final registration u/s. 12AB of the Act.
CIT(E), concurring with the recommendations of the JAO, denied the registration u/s. 12AB of the Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has placed before the authorities the trust deed evidencing its charitable objectives in the nature of general public utility. There is no material brought on record by the ld. CIT(E) to suggest that the objectives are non-charitable or that the activities undertaken are not genuine. CIT(E) has adopted a highly technical and pedantic approach by focusing on the mode of expenditure rather than evaluating the genuineness of the objectives and the growing stage of the trust’s activities. Furthermore, the law prescribes that any violation regarding the actual application of income can be examined during the assessment proceedings, and appropriate action under the relevant sections read with section 12AB of the Act can be taken, but such potential violations cannot be pre-judged at the registration stage.
