Thakur Ram Singh Smriti Nyas Vs ITO (ITAT Chandigarh)
Incomplete Trust Deed Cannot Close the Registration Chapter: ITAT Restores Section 12AB Applications for Examination of Complete Record
Applications for Registration u/s 12AB
Four connected appeals were filed by two assessee-Trusts against the orders passed by the CIT(E), rejecting their applications in Form No.10AB for registration u/s 12AB.
Since the issues involved in all four appeals were identical, the Tribunal considered the facts in ITA No.697/CHD/2026, relating to Thakur Ram Singh Smriti Nyas, & applied its conclusions to the remaining appeals.
The assessee had filed Form No.10AB on 24.09.2025, seeking registration u/s 12AB. While processing the application, the CIT(E) examined the Trust Deed, financial statements & replies furnished by the assessee.
The CIT(E) observed that, in the case of an existing charitable institution, he was required to examine not only its stated objects but also the genuineness of its activities, application of income & compliance with statutory requirements.
Incomplete Trust Deed Invites Show-Cause Notice
On examining the documents, the CIT(E) found that the copy of the Trust Deed furnished by the assessee was incomplete. He also noticed that the expenditure claimed towards charitable activities was comparatively low in relation to the gross receipts.
