TMI Blog2023 (10) TMI 1335X X X X Extracts X X X X X X X X Extracts X X X X ..... to the State/Union Territory Branch and National Headquarters of Red Cross Society is nothing but contractual or compulsive transfer of donation fund does not fall within the ambit of voluntary donation and cannot be treated as application of the fund towards the object of the assessee Trust. Consequently denying the registration u/s. 12AB - CIT(E) has not indicated exact deficiency in the documents submitted by the assessee and exact nature of clarification, explanation required from the assessee, but rejected the registration application without confronting the issue and affording proper opportunity of hearing to the assessee Trust. Therefore in order to prevent miscarriage of justice, we find it fit and proper to provide one more oppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. The assessee furnished the details on 22/12/2022. Another notice was issued by CIT(E) on 02-01-2023 wherein it is stated that the assessee Trust submitted part details, therefore one more opportunity given to the assessee to submit details/documents on or before 09- 01-2023. Since this notice does not specify specific documents as required by Ld. CIT(E), the assessee filed the earlier acknowledgment of details filed before Ld. CIT(E). 3. The Ld. CIT(E) rejected the application of registration u/s. 12AB observing as follows: ..7. From perusal of copy of Trust Deed/Rules/Instrument of creation filed by the applicant/assessee, it is observed that as per rules wrt application of fund are not voluntary but contractual or compulsive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.1. Thus Ld. CIT(E) held that he is unable to arrive at the satisfaction of the genuineness of the activities of the assessee Trust, thereby registration u/s. 12AB was rejected. 4. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12AB of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not provided reasonable opportunity of being heard as provided under Second Proviso to Section 12AB (1)(b)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d thereby Ld. CIT(E) has not given proper opportunity to the assessee to confront the details of transfer of donations to the State and National head quarters. Thus the Ld. Counsel pleaded one more opportunity be given to the assessee before Ld. CIT(E), so that the assessee undertake to file all the requisite details, documents and evidences in support of the case, for grant of registration under section 12AB of the Act. 6. Per contra, the Ld. CIT-DR Shri Akhilendra Pratap Yadav appearing for the Revenue submitted that Ld. CIT(E) as per section 12AB of the Act, has to conduct an enquiry about the activities of the Trust and to verify the objects as per the Trust Deed and genuineness of the activities of the trust and after satisfying the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on u/s. 12AB of the Act. We find that Ld. CIT(E) has not indicated exact deficiency in the documents submitted by the assessee and exact nature of clarification, explanation required from the assessee, but rejected the registration application without confronting the issue and affording proper opportunity of hearing to the assessee Trust. 8. Therefore considering the facts and circumstances of the case, in order to prevent miscarriage of justice, we find it fit and proper to provide one more opportunity of being heard to the assessee in support of its case for registration of the trust u/s. 12AB of the Act. Therefore we dispose of this appeal by restoring this issue to the file of the Ld. CIT(E) with a direction upon him to provide furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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