Kanva Maharishi Trust Vs CIT (Exemptions) (ITAT Bangalore)
Assessee, Kanva Maharishi Trust, a newly established public charitable trust, was granted provisional registration u/s12AB via Form 10AC on 22.10.2023. It applied for regular registration through Form 10AB on 30.05.2024. CIT(Exemptions), based on a verification report from the jurisdictional AO, rejected the application & cancelled the provisional registration, claiming the Trust had not commenced activities & appeared religious in nature.
Assessee argued that the Trust’s objects include charitable purposes like Annadan & promoting Indian culture & are not religious. Donation received & rent paid (to a trustee) indicated commencement of activities. It was never asked to provide evidence of activities & would have clarified if queried.
Tribunal noted that the observation of JAO who was assigned the job of verification has stated that assessee is carrying on religious activities. However looking to the objects of the trust, Tribunal did not find that Assessee is formed for any religious activities. Even otherwise, religious activities are not barred for getting registration u/s. 12AB. No provision of law was shown that trusts with religious purposes is not entitled to registration u/s. 12AB. However, the claim of Assessee needs to be verified that Assessee is using the property of the trustees taken on rent for the objects of the trust. Unless these things are verified, it cannot be said that assessee has not commenced charitable activities.
