Dawat-e-Islami Hind (Jammu) Vs CIT (ITAT Chandigarh)
The appeal before the Income Tax Appellate Tribunal (ITAT), Chandigarh, arose from an order of the Commissioner of Income Tax (Exemptions) rejecting the assessee’s application for registration/approval under Section 12AB of the Income Tax Act. The Commissioner had concluded that the trust was not eligible for registration by relying primarily on the provisions of Section 13(1)(b) and observations regarding its financial transactions and activities.
The assessee contended that it was a religious-cum-charitable trust engaged in religious and educational activities through Madrasas and other institutions. It submitted audited financial statements, details of donations, expenditure records, photographs and documentary evidence showing that donations received from the public and other trusts were utilised for carrying out its stated objects. According to the assessee, there was no finding that its activities were non-genuine or contrary to the objects of the trust. It also argued that the Commissioner had travelled beyond the limited scope of enquiry under Section 12AB while rejecting the application.
The Tribunal noted that the trust’s stated objects included propagation of Islamic teachings, establishment and management of religious and educational institutions, schools, hospitals, shelters, rehabilitation centres, medical camps, scholarship programmes, relief activities during natural disasters, environmental initiatives, and assistance to needy families. The trust also had provisions enabling it to receive donations, support other non-governmental organisations, cooperate with government agencies and undertake activities on a non-commercial and non-political basis.
