ITAT upholds denial of Registration filed u/s 12AB of  Income Tax Act on Absence of proving Genuineness of Charitable Activity [Read Order]

The Pune bench of Income Tax Appellate Tribunal (ITAT) has recently upheld that denial of registration filed under Section 12AB of Income Tax Act 1961 in absence of proving genuineness of charitable activity.

The Section 12AB of Income Tax Act deals with registration of charitable trust.if the trust is not registered as per section 12AB Income Tax Act the income of trust shall not be considered for exemption under section 11 of the Income Tax Act .

The Assessee Vashi Parivaar Foundation filed the appeal against the order Commissioner of Income of Tax(Exemption) [CIT(E)] in rejecting the application  for registering their trust under Section 12AB of the Income Tax Act.

The tribunal issued notice by Speed post but none appeared for the assessee. Thereafter, the tribunal considered observation of the CIT(E) and held that the assessee had not  provided any  details thus genuineness of the activities  and charitableness of the activities could  not be verified.

The tribunal further observed that assessee has not filed any details before this tribunal. No one has appeared on behalf of the assessee. On these circumstances, the two member  tribunal of S.S.Godara, (Judicial Member) and Dr. Dipak P. Ripote, (Accountant Member) dismissed the appeal filed by the assessee.

Recently the  mumbai bench of ITAT in Dr Shivaji rao Jondhale Research Foundation vs CIT directed re-adjudication on finding the rejection of registration of a trust for non-compliance of notice and non-registration under Section 12AB of the Income Tax Act without adhering to the Principles of Natural Justice.

In the another Case, the Mumbai bench of ITAT inNenawat Chhogmal Jethamal Jain Memorial Trust vs CIT held that trust was not eligible for section 12AB registration of Income Tax Act under pre amended deed.

To Read the full text of the Order CLICK HERE

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