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TMI Blog2024 (11) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... ted until & unless the approval is accorded. The application is to be made within 30 days from date of said modification The Application with charity commissioner (CC) for permission to change in object clause was made on 31.03.23 & application for permission from Income Tax department in Form 10AB U/S 12A(1)(ac)(v) was made on 15.04.23. As such by making application in time, the trust has properly complied with the conditions in Act. It's also pertinent to note that even after getting the permission from the CC on 19.04.23, trust till-to-date has not effected any change in its objects, pending permission from the Income Tax Authorities. 2. Earlier 12AB registration received as religious trust: The trust was carrying on religious activity till the time of making of application with charity commissioner dated 31st March 2023. The earlier application for 12AB provisional registration was made stating the nature of activity of the trust as religious activity only and the provisional registration was received against that application vide Unique Registration Number AADTS7194LE20217 dated 24.09.2021. As per the provisions of income tax Act 1961 exemption under section 11 is availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese funds permanently on non-returnable basis. In advertently, the same were shown as Loans instead of as Donations. Now, the accounting has been got corrected by the trust by showing these amounts as donations. The application was made seeking permission for change in object of the trust. The Id.CIT has not commented anything about the proposed change. Instead, he has come to a conclusion that the objects are not genuine and straight away cancelled the registration u/s 12AB. It is pertinent that the existing as well as the proposed objects of the trust are well within the provisions of 2(15) of the Act. 6. Natural Justice Denied: The show cause notice was received dated 05th October 2023 and response due date 10th October to which the trust has replied within due date where in was stated that the activities during the past three years were of religious nature however now onwards after change of object clause the activity of the trust will be of educational nature. However the Ld. CIT has not taken this fact into consideration and mentioned that the activity of the trust is not charitable hut of religious nature. The trust has submitted the supporting documents photographs etc o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the assessee. He not only rejected the assessee's application in Form 10AB u/s 12A(1)(ac)(v) of the Act seeking permission to modify the objects of the trust but also cancelled the registration granted to the trust on 24.09.2021 u/s 12AB of the Act. Aggrieved thereby, the assessee is in appeal before the Tribunal. 7. It is submitted by the Ld. AR that the Charity Commissioner has granted permission to modification/change in the objects of the trust vide his order dated 19.04.2023. He emphasized that despite receiving the said permission of the Charity Commissioner, the trust has not changed its objects pending permission from the Income Tax Authorities in view of the mandatory requirement of sub-clause (a) of clause 10 of Form 10AC. The Ld. AR pointed out that section 12AB registration has been granted to the trust on 24.09.2021 to carry out religious activities which is valid till AY 2026-27. The assessee trust therefore enjoys exemption u/s 11 of the Act. He strongly refuted the allegation of Ld. CIT(E) that the nature of activity of trust is not genuine and submitted that the trust has been carrying out religious activities genuinely. 7.1 The Ld. AR contended that the tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust having any income from non-incidental business. No evidence at all has been brought on record by the Ld. CIT(E) that the trust has carried out any business activity. Yet another specified violation is about application of income which does not enure for the benefit of the public. Not even one instance has been noted by the Ld. CIT(E) in which there is an application of income of the trust for private religious benefit. There is no whisper in the order of the Ld. CIT(E) that there is violation of conditions on the basis of which the registration to the assessee trust was granted. Genuineness of the religious activity carried on by the assessee trust cannot be doubted as it was only after the Ld. CIT(E) was then satisfied about the genuineness of the religious activity of the trust that the registration to the trust was granted u/s 12AB of the Act on 24.09.2021. Unless and until any adverse material is brought on record which has not been done, the Ld. CIT(E) is not justified in withdrawing the registration granted to the trust u/s 12AB of the Act. Non-compliance of any other law/furnishing of incomplete or false or incorrect information has also not been noticed by the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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