St. Joseph Engineering College Alumni Association Vs CIT (Exemptions) (ITAT Bangalore)
Refusal to grant Section 12AB registration to Alumni Association merely on the basis of not incurring the substantial amount of expenditure not valid: ITAT Bangalore
Assessee is a registered society engaged in charitable & social welfare activities, including public awareness programs, social work, & community engagement initiatives as per its stated objectives. The provisional registration was granted from AY 2022-23 to AY 2024-25. Thereafter, the assessee Trust submitted an application in Form 10AB , seeking final registration u/s 12AB.
JAO & Range Head did not recommend for registration, citing the following reasons:-
- Assessee had not made any substantial application of funds in FY 2021-22.
- Assessee has spent on functions & celebrations which are alumni meet. Assessee has spent only a very meager sum of less than Rs.25,000/- for Social work & charity in FY 2022-23 & FY 2024-25.
- In FY 2023-24 Assessee had spent Rs. 29,992/- on charity & social work, Rs. 2.69 Lakhs for marathon against drugs which in the opinion of JAO is for a private event & not applied towards any general public utility.
- JAO also went to the extent of noting that as the assessee received a rejection on the grounds of merits & therefore not eligible for the reapplication.
CIT(E) also observed that the assessee trust has not made substantial amount of expenditure towards the objects & accordingly held that the assessee has not commenced its activities towards the attainment of the object. Hence, rejected the application in form 10AB for registration u/s 12AB.
