9911796707
TMI Blog2023 (10) TMI 1335X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The brief facts of the case is that the assessee is a Trust registered under Bombay Public Trust Act for the object of charitable purposes. The assessee filed an application u/s. 12AB of the Act on 27-09-2022 in Form 10AB under rule 17A of the I.T. Rules. Before Ld. CIT(E), a notice dated 10-12-2022 was issued by CIT(E) through ITBA on the email address of the assessee, asking to furnish detailed note on the activities actually carried out by the Trust and certain documents. 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as application of the fund towards the objects of the applicant/assessee by the District branch i.e. the applicant, as per the provisions of the Act. The assessee/applicant has not submitted any explanation/clarification regarding the same. In absence of such clarification, the aforesaid point of contractual/compulsive application of fund remains unclarified and therefore the genuineness of activities of the applicant/assessee AOP could not be ascertained." 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 Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce dated 02-01-2023 without mentioning specific details required by Ld. CIT(E). Ld. Counsel thus submitted that the Ld. CIT(E) vide his second notice dated 02-01-2023 did not raise any issue about clarification of compulsory application of fund by the assessee Trust, asking for specific details before rejecting assessee's registration application. The assessee Trust was of the bona fide reasons that details already submitted is sufficient compliance and 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted the application on the ground that 30% of the total donation to be received by the assessee Trust will be transferred 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 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 opp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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