Gajanan Maharaj Shikshan Sanstha Vs CIT (Exemptions) (ITAT Nagpur)
The ITAT Nagpur allowed the appeal filed by the assessee against the order passed by the Commissioner of Income Tax (Exemptions), Pune, rejecting registration under section 12AB of the Income Tax Act and cancelling provisional registration earlier granted to the assessee trust.
The assessee had applied for regular registration under section 12AB read with section 12A(1)(ac)(vi) by filing Form No. 10AB on 30.09.2023. During the proceedings, the CIT(E) sought details regarding genuineness of activities, compliance with applicable laws, and donation-related information. The CIT(E) observed certain deficiencies, including non-submission of authenticated trust deed, alleged non-compliance with section 36A of the Maharashtra Public Trusts Act regarding loans, and absence of full addresses and PAN details of donors. The assessee explained that the loans were temporary advances from employees and associates for contingencies and did not require prior permission under section 36A. It was also explained that the donations were small contributions collected from students and other persons.
The CIT(E), however, rejected the application and cancelled provisional registration on the grounds of non-compliance with section 36A of the Maharashtra Public Trusts Act, doubts regarding genuineness of donations, and failure to establish genuineness of activities.
