Eeswara Seva Samithi Vs ITO (Exemptions) (ITAT Bangalore)
Not Spending Immediately No Bar- Tribunal Holds Proposed Activities Are Sufficient for 12AB – Bang Trib
Bangalore ITAT dealt with cancellation of registration u/s 12AB. Assessee trust was formed on 17.05.2022 & was granted provisional registration vide Form 10AC on 26.07.2023. It applied for final registration on 30.06.2024. However, CIT(E) vide order dated 27.12.2024, cancelled the registration on the ground that Assessee had not undertaken genuine charitable activities, had not furnished donor details, had given loans without particulars of borrowers & had not spent major funds on its declared objects.
Assessee contended before Tribunal that its object was to build an old age home. Land was purchased at Jeeganahalli village for ₹30.70 lakh & conversion approval was obtained. Major corpus donations of ₹4.78 crore were received, including ₹4.60 crore & ₹0.50 crore from a single donor, Sama Chaitanya Kumar. Assessee had also filed Form 10 u/s 11(2) for accumulation of ₹4.78 crore for construction of building over a period of 5 years. It was submitted that loans/advances were only towards the construction project.
Revenue, however, maintained that except for land purchase, no charitable activity was carried out. CIT(E) observed that no approved building plan was furnished & that genuineness of utilization of donations was not proved.
