Registration U/s 12AB Cannot Be Denied by Sitting in Judgment Over Financial Prudence — ITAT Delhi Restores U/s 12AB Registration

Seth PannaLal Charitable Trust Vs CIT (Exemptions) (ITAT Delhi) The ITAT Delhi set aside the order of the CIT(E) rejecting Form 10AB and cancelling registration u/s 12AB, holding that the authority had clearly travelled beyond the permissible scope of enquiry at the registration stage. The Tribunal emphasised that at the stage of grant/continuation of registration, the enquiry is confined to objects of the trust and prima facie genuineness of activities, and not to a microscopic examination of fund utilisation or alleged financial impropriety, which is the domain of assessment proceedings. The...