Advaya Educational And Charitable Trust Vs CIT (ITAT Bangalore)
Low Charitable Spending May Invite Questions, Not Instant Rejection—CIT(E) Must Examine Evidence & Hear Trust u/s 12AB: Bangalore ITAT
The Bangalore ITAT has held that an application for registration u/s 12AB cannot be rejected merely because the CIT(E) considers the expenditure on charitable activities to be low compared with the donations received. Before drawing an adverse conclusion, the CIT(E) must examine the trust’s documents, verify whether activities have commenced, confront the trust with the proposed adverse inference & provide an effective opportunity of hearing.
The Tribunal further held that rejection of an earlier application does not create a statutory bar against filing a fresh application, particularly where charitable activities have subsequently commenced.
Trust’s Objects & Provisional Registration
Advaya Educational and Charitable Trust was established on 30.06.2020 with the object of supporting children from migrant communities, irrespective of caste, creed or language.
Its activities were aimed at providing education, nutrition, healthcare & welfare support, preventing school dropouts & eradicating child labour.
The trust was granted provisional registration under the charitable trust provisions, valid from AY 2022-23 to AY 2024-25. It was also granted provisional approval u/s 80G(5) on 08.02.2022.
For regular registration, the trust filed Form 10AB on 30.06.2024.
