Shri Mukund Bhavan Trust Vs CIT (Exemption) (ITAT Pune)
In the matter abovementioned matter appeal is filed against the order passed by CIT (Ex,) who cancelled registration of the assessee u/s 12AB (4). Assessee is a charitable trust. On verification of various documents, CIT(E) noted that in the trust deed it has been categorically mentioned that the trust is a private trust and is set up to impart religious education to a particular caste who accept the principle of Varnashrama Dharma. The deed further states that the trust will not benefit any other caste or individual. Hence, he took view that the trust is not a public charitable trust established with an object of conducting charitable activities for the welfare of the people at large but is a private trust established for the benefit of a particular caste / community. Therefore, he was of the opinion that prima facie the provisions of section 13(1)(a) and 13(1)(b), applies to the case of the assessee. Therefore, he issued show cause notice to explain as to why the registration u/s 12A granted should not be cancelled and consequently why the registration granted u/s 12AB r.w.s. 12A(1)(ac)(i) should also not be cancelled. Assessee filed a detailed reply. However, CIT(E) was not satisfied with the reply. Relying on various decisions including the decision of Hon’ble Supreme Court in the case of New Noble Educational Society vs. CCIT (2022) 143 taxmann.com 276 (SC) he cancelled the registration granted earlier u/s 12A on and consequent registration u/s 12AB r.w.s. 12A(1)(ac)(i).
