MITHALAL NAD BHARAT EDUCATION AND KALAKAR TRUST , BHAYENDAR V. CIT(E), PUNE

ITA 1114/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7760 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2019-2020
• Appeal Filed On: 12-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C SELVAMANI
• Keywords: Charitable institution; Opportunity of being heard; Non compliance; Cancellation of registration; Set aside
• Section: 12A; 12AA; 13; 12

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA (AM) & SHRI PAVAN KUMAR G ADALE (JM) I.T.A. NOS.1114,1115 & 1116/MUM/2020 (ASSESSMENT YEARS : 2019-2020) MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 2 ND FLOOR SHANTI NIWAS, NEW GOLDEN NEST PHASE XIII 100 TH FEET ROAD, BHAYANDAR(E) THANE-401 105 PAN : AAETM5006A VS . CIT(E) ROOM NO.322, 3 RD FLOOR, INCOME TAX OFFICE, PMT BUILDING SHANKAR SETH ROAD PUNE-411 037 ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI VIMAL PUNMIYA DEPARTMENT BY SHRI K.C.SELVAMANI DATE OF HEARING 2 5 /08 /2021 DATE OF PRONOUNCEMENT 30 /08/2021 O R D E R PER SHAMIM YAHYA (AM) :- THESE ARE APPEALS BY THE ASSESSEE BELONGING TO THE SAME GROUP AGAINST THE REJECTION APPLICATION FOR REGISTRATION U/S 12AA DIR ECTED AGAINST RESPECTIVE ORDERS OF LEARNED CIT(E) FOR ASSESSMENT YEARS 2019-20. 2. SINCE THE ISSUES ARE COMMON AND CONNECTED AND TH E APPEALS WERE HEARD TOGETHER, THESE HAVE BEEN CONSOLIDATED AND DISPOSED OFF TOGETHER FOR THE SAKE OF CONVENIENCE. ITA 1114/MUM/2020 3. GROUNDS OF APPEAL READ AS UNDER :- MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(EXEMPTION) ERRED IN REJECTING THE APPLICATION OF REGISTRATION MADE B Y THE APPELLANT U/S 12AAA OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE CRAVES LEAVE TO ADD FURTHER GROUNDS OR TO AMEND OR ALTER THE EXISTING GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. 4. IN THIS CASE, THE ASSESSEES APPLICATION IN FO RM NO.10A FOR APPROVAL OF THE TRUST/INSTITUTION U/S 12AA WAS REJECTED BY THE FOLL OWING ORDER OF LD.CIT. 1. THE APPLICANT HAS MADE AN ONLINE APPLICATION IN FORM NO.L0A FOR APPROVAL OF THE TRUST / INSTITUTION UNDER SECTION 12AA OF THE INCOM E TAX ACT, 1961 ON 24-05-2019 UNDER THE CATEGORY OF CHARITABLE TRUST / INSTITUTION. THE APPLICANT IS REGISTERED UNDER BOMBAY PUBLIC TRUST ACT, 1950 WITH REGISTRATION NUMBER :E- 11558/THANE. 2. THE APPLICATION WAS CAREFULLY PERUSED AND CONSI DERED ALONG WITH ITS ANNEXURES. THEREAFTER, A LETTER WAS ISSUED THROUGH ITBA PORTAL TO THE APPLICANT ON 15-07-2019 REQUESTING TO UPLOAD CERTAIN OTHER INFORMATION/CLAR IFICATION BY 07-08-2019 IN ORDER TO PROCESS THE APPLICATION. 3. ON PERUSAL OF FINANCIAL STATEMENTS OF LAST TWO YEARS UPLOADED BY THE APPLICANT, THAT IS F.Y. 2016-17 AND 2017-18, IT IS SEEN THAT THERE IS NO EXPENDITURE MADE ON THE OBJECTS OF THE TRUST. FURTHER, THE APPLICANT HAS UPLOADED A LE TTER DATED 19/08/2019 WHICH STATES THAT THE TRUST HAS NOT CONDUCTED ANY ACTIVITIES SINCE LA ST THREE YEARS. CONSIDERING THE ABOVE, THE GENUINENESS OF THE CHARI TABLE NATURE OF ACTIVITIES IS NOT ESTABLISHED. 4. THEREFORE, I AM NOT SATISFIED ABOUT THE CHARITA BLE NATURE OF OBJECTS AS WELL AS THE GENUINENESS OF ACTIVITIES OF THE TRUST/INSTITUTION AND HENCE, THE REQUEST FOR GRANT OF REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 1961 C ANNOT BE ACCEPTED. 5. IN VIEW OF THE ABOVE, I HEREBY REJECT THE APPL ICATION FOR GRANT OF REGISTRATION U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961. 5. AGAINST THE ABOVE ORDER ASSESSEE IS IN APPEAL B EFORE US. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORD. MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 3 6. LD. COUNSEL OF THE ASSESSEE CONTENDED THAT LD. CIT HAS DISMISSED/REJECTED THE ASSESSEE APPLICATION ON THE PREMISE THAT ASSESSEE H AS NOT COMMENCED ITS ACTIVITIES. HE SUBMITTED THAT THERE IS NO PROVISION IN THE ACT THAT ASSESSEE MUST COMMENCE THE ACTIVITY BEFORE SEEKING REGISTRATION U/S 12AA. HE F URTHER SUBMITTED THAT THERE ARE CATENA OF DECISIONS ON THIS ISSUE INCLUDING THAT FR OM HONBLE SUPREME COURT. HE FURTHER SUBMITTED THAT, THE QUERIES BY THE LD.CIT H AVE BEEN DULY COMPLIED WITH AND NO OTHER SHORT COMING HAS BEEN POINTED OUT. HENCE, HE SUBMITTED THAT ORDER OF LD.CIT HAS TO BE REVERSED. IN THIS REGARD, LD. COUN SEL OF THE ASSESSEE HAS GIVEN FOLLOWING WRITTEN SUBMISSIONS:- 1. THE APPELLANT IS A CHARITABLE TRUST HAVING ADD RESS AT 2 ND FLOOR, SHANTI NIWAS, NEW GOLDEN NEST PHASE XIII 100 TH FEET ROAD, BHYANDAR (E), THANE IS REGISTERED UNDER BOMBAY PUBLIC TRUST ACT, 1950 WITH REGISTRATION NUM BER E -11569/THANE DATED 05/04/2019. 2. THE SETTLOR OF THE TRUST SHRI MITHALAL R J AIN AGED 83 YEARS, EX MEMBER OF PARLIAMENT WANTS TO DONATE CERTAIN SUM OF MONEY TO THE CHARITABLE TRUST WHICH CAN BE USED FOR NOBLE CAUSE DURING HIS LIFETIME AND AFTER HIS DEATH HE ALREADY FORMED ONE TRUST SHANTABEN MITHALAL JAIN CHARITABLE TRUST AND WISHES TO FORM 3 MORE TRUST FOR THE WELFARE OF THE GENERAL PUBLIC. 3. THE MAIN OBJECT OF THE TRUST IS A) TO ESTABLISH, DEVELOP, MAINTAIN AND GRANT AID IN CA SH OR IN KIND TO HOSPITALS, MEDICAL COLLEGES, NURSING INSTITUTIONS, DISPENSARIE S, MATERNITY HOMES, CHILD WELFARE CENTERS AND/OR SUCH OTHER SIMILAR CHARITABLE INSTIT UTIONS IN INDIA FOR THE BENEFIT AND USE OF THE GENERAL PUBLIC. B) TO GRANT AID OR RENDER ASSISTANCE TO OTHER PUBLIC C HARITABLE TRUSTS OR INSTITUTIONS. C) TO OPEN AND OPERATE THE HOSPITAL FOR THE BENEFIT OF GENERAL PUBLIC. D) TO OPEN AND OPERATE HEALTH AWARENESS CENTERS, GYMS FOR POOR & NEEDY PEOPLE. E) ORGANIZE, AUTHORIZE AND CONTROL VARIOUS HEALTH AWAR ENESS COMPETITIONS/ SEMINARS/ PUBLIC MEETINGS/ CONFERENCE ETC. AT STATE, DISTRICT , NATIONAL AND INTERNATIONAL LEVEL. F) PROVIDE MEDICAL ASSISTANT/MEDICINES/ OTHER MEDICAL AND HEALTH RELATED FACILITY TO GENERAL PUBLIC. G) APART FROM THE ABOVE AND WITHOUT PREJUDICE TO THE A BOVE OBJECTS THE ACTIVITIES WILL BE PURELY OF CHARITABLE NATURE FOR VARIOUS HEALTH P URPOSE. 4. THE APPELLANT HAS MADE ONLINE APPLICATION IN FOR M NO 10A FOR APPROVAL OF THE TRUST UNDER SECTION 12AA OF THE INCOME TAX ACT, 196 1 ON 24-05-2019 5. THE APPLICATION OF TRUST WAS CAREFULLY PERUSED AND CONSIDERED ALONG WITH ITS ANNEXURES. THEREAFTER A LETTER DATED 15/07/2019 WAS ISSUED TO THE APPELLANT REQUESTING MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 4 TO UPLOAD CERTAIN INFORMATION OR CLARIFICATION BY 7 /08/2019 TO WHICH THE APPELLANT UPLOADED THE REQUIRED DETAILS ON 05/08/2019 AND 12/ 08/2019 6. THE LD CIT (EXEMPTION) PUNE IN ITS ORDER DATED 2 9/11/2019 REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S 12AA(L)(B )(II) OF THE INCOME TAX ACT FOR FOLLOWING REASONS: (I) APPELLANT HAS NOT INCURRED ANY EXPENDITURE FOR THE OBJECT OF THE TRUST (II) APPELLANT HAS NOT FURNISHED CERTAIN DETAILS IN RESPONSE TO LE TTER ISSUED ON 15/07/2019 ON THE BASIS OF AFOREMENTIONED REASONS THE CIT(EXEM PTION) PUNE WAS NOT SATISFIED ABOUT THE CHARITABLE NATURE OF OBJECTS AS WELL AS G ENUINENESS OF ACTIVITIES OF THE TRUST AND THEREFORE REJECTED THE APPLICATION FOR GRANT OF REGISTRATION 7. THE APPELLANT BEING AGGRIEVED WITH THE ORDER OF CIT(EXEMPTION) PUNE IS IN APPEAL BEFORE YOUR HONOURS RAISING FOLLOWING GROUNDS. GROUND NO 1 & 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT (EXEMPTION) ERRED IN REJECTING THE APPLICATION OF REGISTRATION MADE BY THE APPELLANT U/S 12AA OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE CRAVES LEAVE TO ADD FURTHER GROUNDS OR TO AMEND OR ALTER THE EXISTING GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. OUR SUBMISSION TO THE ABOVE 1. THE LETTER WHICH DATED 15.07.2019 CONTAINED AN E XCLUSIVE LIST TO BE COMPLIED WITH WHICH THE APPELLANT HAS DULY FURNISHED THE SAME ON 05/08/2019 AND 12/08/2019. THE BASIC DETAILS ALONG WITH ANNEXURE WERE FILED ON 05/ 08/2019 AND AN EXPLANATORY LETTER WAS FILED ON 12/08/2019 TO PROVIDE MORE JUSTIFICATI ON TO THE NOTICE DATED 15/07/2019. 2. THE LETTER DATED 15/07/2019 AMONG OTHER THINGS I NCLUDED CERTAIN POINTS WHICH ACCORDING TO CIT (EXEMPTION) PUNE WAS NOT COMPLIED WITH RESPECT TO IRREVOCABILITY OF TRUST, BENEFICIARY TO THE TRUST SHALL BE GENERAL PUBLIC AND NOT ANY SPECIFIC INDIVIDUAL, DISSOLUTION OF TRUST AND THE TREATMENT OF ASSETS OR FUNDS OF THE TRUST AT THE TIME OF DISSOLUTION AND WHETHER THE FUNDS OR PROPER TY OF THE TRUST WOULD BE USED FOR THE OBJECTS OF THE TRUST. 3. ON CAREFUL READING OF THE TRUST DEED IT IS VERY CLEAR THAT THE POINTS MENTIONED BY LD. CIT (EXEMPTION) PUNE WERE ALREADY COVERED AND C OMPLIED ON 05/08/2019 WHILE UPLOADING ALL THE DETAILS INCLUDING TRUST DEED. 3. WE WOULD ONCE AGAIN REITERATE THE AFOREMENTIONED PO INTS TO WHICH THE LD CIT (EXEMPTION) PUNE HAVE NOT CONSIDERED WHILE REJECTIN G THE APPLICATION WITH RESPECT TO POINT NO 14 OF THE NOTICE DATED 15/ 07/2019 THE LD CIT (EXEMPTION) PUNE ERRED IN NOT CONSIDERING THE CONTENTS OF THE T RUST DEED AND MENTIONED THAT YOUR MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 5 TRUST DEED DOES NOT HAVE IRREVOCABILITY CLAUSE TO W HICH WE WOULD LIKE TO INFORM YOUR HONOR THAT THE SAID CLAUSE IS COVERED IN THE TRUST DEED AT PARAGRAPH NO 31 ON PAGE NO 16 OF THE TRUST DEED (PAPER BOOK PAGE NO 17) WHICH CLEARLY CONTAINS THE WORD ' IT IS HEREBY DECLARED THAT THE TRUST SHALL BE AND REMAIN IRREVOCABLE FOR ALL TIMES TO COME'. THE SAME EXPLANATION WERE AGAIN SUBMITTED TO CIT(EX EMPTION) PUNE VIDE LETTER DATED 12/08/2019. HOWEVER, IT WAS NOT CONSIDERED BY LD CIT (EXEMPTION) PUNE FOR THE REASON BEST KNOWN TO THEM. WITH RESPECT TO POINT NO 15 OF THE NOTICE DATED 15/ 07/2019 THE LD CIT (EXEMPTION) PUNE ERRED IN NOT CONSIDERING THE CONTENTS OF THE T RUST DEED AND MENTIONED THAT YOUR TRUST DEED DOES NOT HAVE A CLAUSE THAT THE BENEFICI ARIES ARE A SECTION OF THE PUBLIC AND NOT SPECIFIC INDIVIDUALS TO WHICH WOULD LIKE TO INF ORM YOUR HONOR THAT THE SAID CLAUSE IS COVERED AT PAGE NO 11 OF THE SAID TRUST DEED (RE FER TO PAPER BOOK PAGE NO 12) STATING THAT */T IS HEREBY EXPRESSLY AGREED AND DECLARED THAT THE TRUSTEES SHALL HAVE THE POWER BY AN UNANIMOUS RESOL UTION IN THAT BEHALF TO MODIFY, ENLARGE OR TERMINATE AN Y OF THE OBJECTS AND PURPOSES OF THESE PRESENTS OR ANY OTHER POWER OR PROVISION OF THESE PRESENTS WITHOUT HOWEVER AFFECTING IN ANY WAY THE GENERAL OBJECT AND PURPOSE OF THE TRUST FOR UTILIZI NG THE TRUST FUNDS AND THE INCOME OF THE TRUST FUNDS FOR THE CHARITABLE PURPOSE OF BE TTERMENT OF HEALTH OF THE GENERAL PUBLIC IRRESPECTIVE OF THEIR CASTE AND CREED AND TO THE INTEND THAT THE TRUST FUND AND THE INCOME THEREOF SHALL AT ALL TIMES HEREAFTER BE UTILIZED FOR SUCH CHARITABLE PURPOSE FOR BETTERMENT OF HEALTH OF THE GENERAL PUBLIC ONLY AND NOT OTHERWISE AND ON THE TRUSTEES RESOLVIN G TO TERMINATE ANY PARTICULAR OBJECT OR PURPOSE OR ANY PARTICULAR POWER OR PROVIS ION AS AFORESAID, THE SAME SHALL THEREAFTER CEASE TO BE APPLICABLE BUT WITHOUT PREJU DICE TO THE RIGHTS OF THE TRUSTEES BY SIMILAR UNANIMOUS RESOLUTION TO RESTOR E ANY SUCH OBJECT OR PURPOSE OR POWER OR PROVISIONS EITHER IN THE ORIGINAL FORM OR WITH SUCH MODIFICATION/S THERETO AS THE TRUSTEES MAY, IN ACCORDANCE WITH PROVISION OF THIS CLAUSE, DETERMINE' WITH RESPECT TO POINT NO 16 OF THE NOTICE DATED 15/ 07/2019 THE LD CIT (EXEMPTION) PUNE ERRED IN NOT CONSIDERING THE CONTENTS OF THE T RUST DEED AND MENTIONED THAT YOUR TRUST DEED DOES NOT HAVE ANY CLAUSE PROVIDING THAT IN THE EVENT OF DISSOLUTION OF TRUST THE FUNDS/ASSETS OF THE TRUST WILL BE TRANSFERRED O NLY TO SOME OTHER TRUST HAVING SIMILAR OBJECTS TO WHICH WOULD LIKE TO INFORM YOUR HONOR TH AT THE SAID CLAUSE IS COVERED AT PAGE NO 17 OF THE SAID TRUST DEED STATING THAT (REFER TO PAPER BOOK PAGE NO 18) STATING THAT 'THE DECISION FOR WINDING UP OR CLOSURE OF THE SAME WILL BE TAKEN WITH THE UNANIMOUS DECISION OF ALL THE BOARD OF TRUSTEES. ALL MONEY INCLUDING CAPITAL MONEY AND ALL ASSETS OF THIS TRUST WOULD BE HANDED OVER T O ANY CHARITABLE TRUST HAVING SIMILAR OBJECT ONLY AFTER THE UNANIMOUS DECISION OF ALL THE TRUSTEES'. WITH RESPECT TO POINT NO 17 OF THE NOTICE DATED 15/ 07/2019 THE LD CIT (EXEMPTION) PUNE ERRED IN NOT CONSIDERING THE CONTENTS OF THE T RUST DEED AND MENTIONED THAT YOUR TRUST DEED DOES NOT HAVE ANY CLAUSE PROVIDING THAT THE FUNDS/PROPERTY OF THE TRUST WILL BE USED FOR THE OBJECTIVES OF THE TRUST TO WHICH WO ULD LIKE TO INFORM YOUR HONOR THAT THE SAID CLAUSE IS COVERED AT PAGE NO 7 OF THE SAID TRUST DEED STATING THAT (REFER TO MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 6 PAPER BOOK PAGE NO 8) STATING THAT 'THE TRUSTEES HAVE ENTIRE CONTROL AND MANAGEMENT OF THE AFFAIRS OF THE TRUST AND THE ADMINISTRATION OF ALL ITS PROPERTIES, MOVABLE AND IMMOVABLE AND SHALL HAVE POWERS TO DO A LL SUCH ACTS AND THINGS FOR CARRYING OUT THE OBJECTS OF THE TRUST'. ALL THESE AFORE MENTIONED POINT WERE CLEARLY MENTIO NED IN THE TRUST DEED WHICH WAS UPLOADED ON INCOME TAX PORTAL ON 05/08/2019 EVEN TH EREAFTER THE LD CIT (EXEMPTION) PUNE ERRED IN NOT CONSIDERING SUCH POIN TS AND HELD THAT THE APPELLANT TRUST HAS NOT FURNISHED THE REQUISITE DETAILS ON IT BA PORTAL AND REJECTED THE APPLICATION OF THE APPELLANT. THE OTHER GROUND FOR REJECTION WAS THAT THE APPELLA NT HAS NOT INCURRED ANY EXPENDITURE ON THE OBJECT OF THE TRUST TO WHICH WE WOULD LIKE TO INFORM YOUR HONOR THAT THE PURPOSE OF SECTION 12AA IS TO ENABLE REGIS TRATION ONLY OF SUCH TRUST OR INSTITUTION WHOSE OBJECTS AND ACTIVITIES ARE GENUIN E. IN OTHER WORDS, THE COMMISSIONER IS BOUND TO SATISFY HIMSELF THAT THE O BJECTS OF THE TRUST ARE GENUINE AND THAT ITS ACTIVITIES ARE IN FURTHERANCE OF THE O BJECTS OF THE TRUST, THAT ARE EQUALLY GENUINE. SINCE SECTION 12AA PERTAINS TO THE REGISTR ATION OF THE TRUST AND NOT TO ASSESS WHAT A TRUST HAS ACTUALLY DONE, IT IS VIEWED THAT T HE TERM 'ACTIVITIES' IN THE PROVISION INCLUDES PROPOSED ACTIVITIES. THAT IS TO SAY, A CO MMISSIONER IS BOUND TO CONSIDER WHETHER THE OBJECTS OF THE TRUST ARE GENUINELY CHAR ITABLE IN NATURE AND WHETHER THE ACTIVITIES WHICH THE TRUST PROPOSED TO CARRY ON ARE GENUINE IN THE SENSE THAT THEY ARE IN LINE WITH THE OBJECTS OF THE TRUST. IN CONTRAST, THE POSITION WOULD BE DIFFERENT WHERE THE COMMISSIONER PROPOSES TO CANCEL THE REGISTRATIO N OF A TRUST UNDER SUBSECTION (3) OF SECTION 12AA. THERE THE COMMISSIONER WOULD BE BO UND TO RECORD THE FINDING THAT AN ACTIVITY OR ACTIVITIES ACTUALLY CARRIED ON BY TH E TRUST ARE NOT GENUINE, BEING NOT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST. RELIANCE IS PLACED ON FOLLOWING JUDICIAL PRONOUNCEM ENTS SR. NO CASE NAME JUDICIAL RULING 1. ANANDA SOCIAL & EDUCATIONAL TRUST V CIT [2020] 114 TAXMANN.COM 693/272 TAXMAN 7/426 JTR 340 (SUPREME COURT) EVEN WITHOUT ANY ACTIVITY HAVING BEEN UNDERTAKEN B Y TRUST, IT IS POSSIBLE TO CONSIDER WHETHER TRUST COU LD BE REGISTERED UNDER SECTION 12AA. THE ASSESSEE-TRUST WAS FORMED AS A SOCIETY AND IT APPLIED FOR REGISTRATION WITHIN A PERIOD OF ABOUT T WO MONTHS. HOWEVER, NO ACTIVITIES HAD BEEN UNDERTAKEN BY THE TRUST BEFORE APPLICATION WAS MADE. THE COMMISSIONER REJECTED APPLICATION ON SOLE GROUND THAT SINCE NO ACTIVITIES HAD BEEN UNDERTAKEN BY TRU ST, IT WAS NOT POSSIBLE TO REGISTER IT, PRESUMABLY BECAUSE IT MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 7 WAS NOT POSSIBLE TO FORM SATISFACTION ABOUT WHETHER ACTIVITIES OF TRUST WERE GENUINE. THE TRIBUNAL REVE RSED ORDERS OF THE COMMISSIONER THE HIGH COURT UPHELD ORDER OF THE TRIBUNAL AND CAME TO CONCLUSION THAT, EVEN THOUGH THERE WERE NO ACTIVITIES, IT WAS POSSIB LE WHETHER TRUST COULD BE REGISTERED UNDER SECTION 12A A. 2 PRINCIPAL CIT(E) V. SHRI NATHJI GOVERDHAN NATHJI CHARITABLE TRUST [2020] 120 TAXMANN.COM 256/274 TAXMAN 498/423 ITR 69 (CAL) VERIFICATION OF GENUINENESS OF ACTIVITY IS NOT COND ITION PRECEDENT FOR GRANTING REGISTRATION UNDER SECTION 12AA. 3 CIT V. MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY [2O20] 115 TAXMANN.COM 71/270 TAXMAN 21/425/ITR 166 (BOM) WHERE NO FINDINGS HAD BEEN RECORDED BY DIRECTOR THAT ACTIVITIES OF ASSESSEE TRUST WERE NOT GENUINE OR THAT ACTIVITIES WERE NOT BEING CARRIED OUT IN ACCORDANCE WITH OBJECTS OF TRUST, CANCELLATION OF REGISTRATION GRANTED TO ASSESSEE TRUST ON GROUND TH AT IT WAS DIRECTLY HIT BY PROVISO TO SECTION 2(15) WAS NO T JUSTIFIED. 4 GOA INDUSTRIAL DEVELOPMENT CORPN. V CIT [2020] 116 TAXMANN.COM 42/421 ITR 676/271 TAXMAN 58 (BOM) THERE BEING NO FINDINGS THAT ACTIVITIES OF ASSESSEE WERE NOT GENUINE OR IN ACCORDANCE WITH OBJECT OF TR UST MERELY BECAUSE ACTIVITIES OF ASSESSEE WERE COVERED UNDER THE PROVISO TO SECTION 2(15), THAT, BY ITSELF , WOULD NOT RENDER ACTIVITIES OF ASSESSEE AS NON GENU INE ACTIVITIES SO AS TO ENTITLE COMMISSIONER TO EXERCIS E POWERS UNDER SECTION 12AA(3) TO CANCEL REGISTRATION . 5 CIT (EXEMPTIONS) V. SHREE DURGA MATA MANDIR [2020] 121 TAXMANN. COM 31/275 TAXMAN 575 (PUNJ. & HAR) COMMISSIONER (EXEMPTION) WAS NOT JUSTIFIED IN DECLINING REGISTRATION TO ASSESSEE SOCIETY WHEN THE RE WAS NOTHING ON RECORD TO SHOW THAT ASSESSEE WAS NOT WORKING FOR ACHIEVING ITS AIMS AND OBJECTS OR THAT ACCUMULATED FUNDS WERE USED FOR PURPOSES OTHER THAN AIMS AND OBJECTS OF ASSESSEE. 6 CIT V. DIVINE SHIKSHA SAMITI [2020] 121 TAXMANN.COM 175 (MP) WHERE THERE WAS NO DOUBT ABOUT GENUINENESS OF OBJECTS OF SOCIETY FOR GRANT OF REGISTRATION U/S 12 AA, TRIBUNAL WAS CORRECT IN DIRECTING COMMISSIONER (EXEMPTION) TO GRANT REGISTRATION TO SOCIETY, IRRESPECTIVE OF FINDINGS OF COMMISSIONER(EXEMPTION) MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 8 THAT SOCIETY EXISTED FOR PURPOSE OF PROFIT OF OFFIC E BEARERS AND NOT FOR CHARITABLE PURPOSE. 7. PER CONTRA LD. DR RELIED UPON THE ORDERS OF TH E LD.CIT. 8. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS. WE NOTE THAT THE LD.CIT IN HIS ORDER OF REJECTION HAS NOTED THE ONLY ADVERSE REASO N THAT IN FINANCIAL STATEMENT OF LAST TWO YEARS UPLOADED BY THE ASSESSEE FOR FY 2016-17 & 2017-18, IT IS SEEN THAT THERE IS NO EXPENDITURE MADE ON THE OBJECT OF THE TRUST. FUR THER, HE HAS NOTED THAT ASSESSEE HAS NOT CONDUCTED ANY ACTIVITY. IN THIS REGARD, WE REFE R TO THE PROVISION OF SECTION 12AA AS UNDER:- 12AA. (1) THE PRINCIPAL COMMISSIONER OR COMMISSIONER, ON RECEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR INSTITUT ION MADE UNDER CLAUSE ( A ) OR CLAUSE ( AA ) OR CLAUSE ( AB ) OF SUB-SECTION (1) OF SECTION 12A , SHALL [( A ) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE T RUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT, ( I ) THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INS TITUTION; AND ( II ) THE COMPLIANCE OF SUCH REQUIREMENTS OF ANY OTHER LAW FOR THE TIME BEING IN FORCE BY THE TRUST OR INSTITUTION AS ARE MATERIA L FOR THE PURPOSE OF ACHIEVING ITS OBJECTS, AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NEC ESSARY IN THIS BEHALF; AND] ( B ) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES [AS REQUIRED UNDER SU B-CLAUSE ( I ) OF CLAUSE ( A ) AND COMPLIANCE OF THE REQUIREMENTS UNDER SUB-CLAUSE ( II ) OF THE SAID CLAUSE], HE ( I ) SHALL PASS AN ORDER IN WRITING REGISTERING THE TR UST OR INSTITUTION; ( II ) SHALL, IF HE IS NOT SO SATISFIED, PASS AN ORDER I N WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION, AND A COPY OF SUCH ORDER SHALL BE SENT TO THE APPLI CANT : PROVIDED THAT NO ORDER UNDER SUB-CLAUSE ( II ) SHALL BE PASSED UNLESS THE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNITY OF BEING HEARD. (1A) ALL APPLICATIONS, PENDING BEFORE THE PRINCIPAL CHIEF COMMISSIONER OR CHIEF COMMISSIONER ON WHICH NO ORDER HAS BEEN PASSED UNDE R CLAUSE ( B ) OF SUB-SECTION (1) BEFORE THE 1ST DAY OF JUNE, 1999, SHALL STAND TRANS FERRED ON THAT DAY TO THE PRINCIPAL COMMISSIONER OR COMMISSIONER AND THE PRINCIPAL COMM ISSIONER OR COMMISSIONER MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 9 MAY PROCEED WITH SUCH APPLICATIONS UNDER THAT SUB-S ECTION FROM THE STAGE AT WHICH THEY WERE ON THAT DAY. (2) EVERY ORDER GRANTING OR REFUSING REGISTRATION U NDER CLAUSE ( B ) OF SUB-SECTION (1) SHALL BE PASSED BEFORE THE EXPIRY OF SIX MONTHS FRO M THE END OF THE MONTH IN WHICH THE APPLICATION WAS RECEIVED UNDER CLAUSE ( A ) OR CLAUSE ( AA ) OR CLAUSE ( AB ) OF SUB- SECTION (1) OF SECTION 12A . (3) WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTE D REGISTRATION UNDER CLAUSE ( B ) OF SUB-SECTION (1) OR HAS OBTAINED REGISTRATION AT ANY TIME UNDER SECTION 12A [AS IT STOOD BEFORE ITS AMENDMENT BY THE FINANCE (NO. 2) ACT, 19 96 (33 OF 1996)] AND SUBSEQUENTLY THE PRINCIPAL COMMISSIONER OR COMMISSI ONER IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION ARE NOT GEN UINE OR ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITU TION, AS THE CASE MAY BE, HE SHALL PASS AN ORDER IN WRITING CANCELLING THE REGISTRATIO N OF SUCH TRUST OR INSTITUTION: PROVIDED THAT NO ORDER UNDER THIS SUB-SECTION SHALL BE PASSE D UNLESS SUCH TRUST OR INSTITUTION HAS BEEN GIVEN A REASONABLE OPPORTUNITY OF BEING HEARD. (4) WITHOUT PREJUDICE TO THE PROVISIONS OF SUB-SECT ION (3), WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTED REGISTRATION UNDER CLA USE ( B ) OF SUB-SECTION (1) OR HAS OBTAINED REGISTRATION AT ANY TIME UNDER SECTION 12A [AS IT STOOD BEFORE ITS AMENDMENT BY THE FINANCE (NO. 2) ACT, 1996 (33 OF 1996)] AND SUBSEQUENTLY IT IS NOTICED THAT [( A ) THE ACTIVITIES OF THE TRUST OR THE INSTITUTION AR E BEING CARRIED OUT IN A MANNER THAT THE PROVISIONS OF SECTIONS 11 AND 12 DO NOT APPLY TO EXCLUDE EITHER WHOLE OR ANY PART OF THE INCOME OF SUCH TRUST OR INSTITUT ION DUE TO OPERATION OF SUB- SECTION (1) OF SECTION 13 ; OR ( B ) THE TRUST OR INSTITUTION HAS NOT COMPLIED WITH TH E REQUIREMENT OF ANY OTHER LAW, AS REFERRED TO IN SUB-CLAUSE ( II ) OF CLAUSE ( A ) OF SUB-SECTION (1), AND THE ORDER, DIRECTION OR DECREE, BY WHATEVER NAME CALLED, HOLDI NG THAT SUCH NON- COMPLIANCE HAS OCCURRED, HAS EITHER NOT BEEN DISPUT ED OR HAS ATTAINED FINALITY, THEN, THE PRINCIPAL COMMISSIONER OR THE COMMISSIONE R MAY, BY AN ORDER IN WRITING, CANCEL THE REGISTRATION OF SUCH TRUST OR INSTITUTIO N:] PROVIDED THAT THE REGISTRATION SHALL NOT BE CANCELLED UNDER THIS SUB-SECTION, IF THE TRUST OR INSTITUTION PROVES THAT THERE WAS A REASON ABLE CAUSE FOR THE ACTIVITIES TO BE CARRIED OUT IN THE SAID MANNER. [( 5 ) NOTHING CONTAINED IN THIS SECTION SHALL APPLY ON O R AFTER THE 1ST DAY OF APRIL, 2021. ] 9. A READING OF THE ABOVE SAID PROVISION MAKES IT CLEAR THAT THE ACT DOES NOT MANDATE THAT UNLESS TRUST HAS COMMENCED ITS ACTIVITY, IT CA NNOT BE REGISTERED. THE PROVISION OF LAW PROVIDES THAT LD.CIT SHALL CALL FOR DOCUMENTS A ND INFORMATION ON THE TRUST IN ORDER TO SATISFY ABOUT THE GENUINENESS OF THE TRUST /INSTITUTION AND THE COMPLIANCE OF SUCH REQUIREMENT OF ANY OTHER LAW AS ARE MATERIAL FOR THE PURPOSE OF ACHIEVING ITS OBJECT. LD.CIT WAS ALSO REQUIRED TO SATISFY HIMSEL F ABOUT THE OBJECT OF THE TRUST OR MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 10 INSTITUTION AND GENUINENESS OF ITS ACTIVITIES. A RE ADING OF THE LD.CIT ORDER SHOWS THAT THERE IS NO WHISPER THAT THE LD.CIT IS NOT SATISFIE D ABOUT THE OBJECTS OF THE TRUST. OR THAT IT IS IN VARIANCE WITH ANY LAW. THE SOLE OBJEC TION OF THE LD.CIT IS THAT ASSESSEE HAS NOT COMMENCED ITS ACTIVITY. NON COMMENCEMENT OF THE ACTIVITY CANNOT GIVE A PRESUMPTION THAT ACTIVITY/OBJECTS ARE NOT GENUINE. MOREOVER, AS ALREADY POINTED OUT HEREINABOVE, THE LAW DOES NOT MANDATE THAT TRUST HA S TO COMMENCE THE ACTIVITIES FOR SEEKING REGISTRATION. IN THIS REGARD, THE CASE LAW FROM THE HONBLE SUPREME COURT IN THE CASE OF ANANDA SOCIAL AND EDUCATION TRUST(SUPRA ) APPLIES ON ALL FOURS ON THE FACTS OF THIS CASE. IN THAT CASE ALSO, IT WAS HELD THAT T HE ASSESSEE-TRUST WAS FORMED AS A SOCIETY AND IT APPLIED FOR REGISTRATION WITHIN A PE RIOD OF ABOUT TWO MONTHS. HOWEVER, NO ACTIVITIES HAD BEEN UNDERTAKEN BY THE TRUST BEFO RE APPLICATION WAS MADE. THE COMMISSIONER REJECTED APPLICATION ON SOLE GROUND TH AT SINCE NO ACTIVITIES HAD BEEN UNDERTAKEN BY TRUST, IT WAS NOT POSSIBLE TO REGISTE R IT, PRESUMABLY BECAUSE IT WAS NOT POSSIBLE TO FORM SATISFACTION ABOUT WHETHER ACTIVIT IES OF TRUST WERE GENUINE. THE TRIBUNAL REVERSED ORDERS OF THE COMMISSIONER THE HI GH COURT UPHELD ORDER OF THE TRIBUNAL AND CAME TO CONCLUSION THAT, EVEN THOUGH T HERE WERE NO ACTIVITIES, IT WAS POSSIBLE WHETHER TRUST COULD BE REGISTERED UNDER SE CTION 12AA. 10. THE OTHER CASE LAWS HEREINABOVE ALSO SUPPORTE D THE PROPOSITION THAT NON COMMENCEMENT OF THE ACTIVITY CANNOT BE TAKEN AS PRE SUMPTION THAT ASSESSEE SHOULD NOT BE GIVEN REGISTRATION, OR THAT AN ADVERSE INFER ENCE CAN BE TAKEN FOR FORMING SATISFACTION ABOUT THE GENUINENESS OF ACTIVITIES AN D OBJECTS. HENCE, IN THE FACTS AND CIRCUMSTANCES OF THIS CASE, THE ORDER OF THE LD.CIT IS NOT AT ALL SUSTAINABLE. THOUGH, LD.CIT HAS NOT DRAWN ANY OTHER OBJECTION, THE LD. C OUNSEL OF THE ASSESSEE HAS ALSO GIVEN IN THE WRITTEN SUBMISSIONS THAT HE HAS ALREAD Y COMPLIED WITH ALL THE REQUIREMENTS OF THE NOTICE. THE SAME HAS NOT BEEN DISPUTED BY THE REVENUE. THIS AMPLY SHOWS THAT ASSESSEE TRUST HAS DULY COMPLIED W ITH THE REQUIREMENTS AS CALLED FOR BY THE LD.CIT. MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 11 11. THUS, THE REJECTION ORDER OF LD.CIT ON THIS GRO UND THAT ASSESSEE HAS NOT COMMENCED ITS ACTIVITIES IS NOT SUSTAINABLE IN LAW. HENCE, WE SET ASIDE THE ORDER OF LD.CIT AND DIRECT THE ASSESSEE SHOULD BE GRANTED TH E REGISTRATION. ITA NO.1115 & 1116/MUM /2020 12. THE GROUNDS RAISED ARE SIMILAR TO THE ONE RAISE D IN ITA NO.1114/MUM/2020. HOWEVER, THERE IS A VARIATION IN THE ORDER OF LD.CI T. THE ORDERS OF LD.CIT ARE AS UNDER:- ITA NO. 1115/MUM/2020 THE APPLICANT HAS MADE AN ONLINE APPLICATION IN FOR M NO.10A FOR APPROVAL OF THE TRUST / INSTITUTION UNDER SECTION 12AA OF THE INCOM E TAX ACT, 1961 ON 24-05-2019 UNDER THE CATEGORY OF CHARITABLE TRUST / INSTITUTIO N. THE APPLICANT IS REGISTERED UNDER BOMBAY PUBLIC TRUST ACT, 1950 WITH REGISTRATION NUM BER: E-11551/THANE DATED 02-04-2019. 2. THE APPLICATION WAS CAREFULLY PERUSED AND CONSID ERED ALONG WITH ITS ANNEXURES. THEREAFTER, A LETTER WAS ISSUED THROUGH ITBA PORTAL TO THE APPLICANT ON 15-07-2019 REQUESTING TO UPLOAD CERTAIN INFORMATION/CLARIFICAT ION BY 07-08-2019 IN ORDER TO PROCESS THE APPLICATION. THE APPLICANT SUBMITTED IT S COMPLIANCE ON ITBA PORTAL IN RESPONSE TO THE SAID NOTICE. HOWEVER, IT IS NOTICED THAT THE APPLICANT HAS NOT MADE FULL COMPLIANCE TO THE NOTICE ISSUED. 3. FURTHER, THE SUBMISSION UPLOADED BY THE APPLICAN T ON ITBA PORTAL IN RESPONSE TO NOTICE DATED 15-07-2019 IS NOT COMPLETE IN AS MUCH AS THE APPLICANT HAS NOT UPLOADED NOTE ON ACTIVITIES CONDUCTED IN LAST THREE YEARS OR SINCE INCEPTION, DETAILS OF DONATIONS MADE, DETAILS OF DONATIONS RECEIVED, UNDE RTAKING FOR NON-INFRINGEMENT OF 1ST PROVISO TO SECTION 2(15) OF THE ACT, SUPPORTIVE CREDIBLE EVIDENCE IN RESPECT OF ACTIVITIES CARRIED OUT, AS REQUIRED UNDER THE PROVI SIONS OF SECTION 12AA(1)(A) OF THE IT ACT. FURTHER, A FINAL OPPORTUNITY LETTER WAS ISSUED TO THE APPLICANT THROUGH ITBA PORTAL ON 05/11/2019 TO UPLOAD COMPLETE COMPLIANCE OF THE QUESTIONNAIRE ISSUED EARLIER AND YEAR WISE DETAILS OF ACTIVITIES CARRIED OUT IN LAST THREE YEARS WITH EXPENDITURE INCURRED AND SUPPORTING CREDIBLE EVIDEN CES ALONGWITH COPIES OF RELEVANT MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 12 BANK ACCOUNTS ON OR BEFORE 11/11/2019. HOWEVER, THE APPLICANT HAS NOT RESPONDED TO THE FINAL OPPORTUNITY LETTER TILL DATE. DUE TO CHANGE OF INCUMBENT OF OFFICE, FURTHER OPPOR TUNITY UNDER THE PROVISIONS OF SECTION 129 OF THE INCOME TAX ACT, 1961 WAS GIVEN T O THE APPLICANT REQUESTING IT TO UPLOAD ITS COMPLIANCE BY 25/11/2019. HOWEVER, THE A PPLICANT HAS NOT RESPONDED TO THE SAME TILL DATE. THEREFORE, THE GENUINENESS OF T HE CHARITABLE NATURE OF ACTIVITIES IS NOT ESTABLISHED. 4. CONSIDERING THE ABOVE FACTS, IT IS SEEN THAT THE APPLICANT HAS NOT FURNISHED THE REQUISITE DETAILS ON THE ITBA PORTAL FULLY OR COMPL IED TO THE NOTICE DATED 15-07-2019 TO PROCESS THE APPLICATION FOR GRANTING REGISTRATIO N U/S 12AA OF THE. INCOME TAX ACT, 1961. THEREFORE, I AM NOT SATISFIED ABOUT THE CHARI TABLE NATURE OF OBJECTS AS WELL AS THE GENUINENESS OF ACTIVITIES OF THE TRUST / INSTIT UTION AND HENCE, THE REQUEST FOR GRANT OF REGISTRATION U/S 12AAOFTHE INCOME-TAX ACT, 1961 CANNOT BE ACCEPTED. 5. IN VIEW OF THE ABOVE, I HEREBY REJECT THE APPLIC ATION FOR GRANT OF REGISTRATION U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961. ITA NO.1116/MUM/2020 1. THE APPLICANT HAS MADE AN ONLINE APPLICATION IN FORM NO.10A FOR APPROVAL OF THE TRUST / INSTITUTION UNDER SECTION 12AA OF THE INCOM E TAX ACT, 1961 ON 24-05-2019 UNDER THE CATEGORY OF CHARITABLE TRUST / INSTITUTIO N. THE APPLICANT IS REGISTERED UNDER BOMBAY PUBLIC TRUST ACT, 1950 WITH REGISTRATION NUM BER; E-11569/THANE DATED 05-04-2019. 2. THE APPLICATION WAS CAREFULLY PERUSED AND CONSID ERED ALONG WITH ITS ANNEXURES. THEREAFTER, A LETTER WAS ISSUED THROUGH ITBA PORTAL TO THE APPLICANT ON 15-07-2019 REQUESTING TO UPLOAD CERTAIN INFORMATION/CLARIFICAT ION BY 07-08-2019 IN ORDER TO PROCESS THE APPLICATION. THE APPLICANT SUBMITTED IT S COMPLIANCE ON ITBA PORTAL IN RESPONSE TO THE SAID NOTICE. HOWEVER, IT IS NOTICED THAT THE APPLICANT HAS NOT MADE FULL COMPLIANCE TO THE NOTICE ISSUED. 3. FURTHER, THE SUBMISSION UPLOADED BY THE APPLICAN T ON ITBA PORTAL IN RESPONSE TO NOTICE DATED 15-07-2019 IS NOT COMPLETE IN AS MUCH AS THE APPLICANT HAS NOT UPLOADED SUPPORTIVE CREDIBLE EVIDENCE IN RESPECT OF ACTIVITI ES CARRIED OUT, AS REQUIRED UNDER THE PROVISIONS OF SECTION 12AA(1)(A) OF THE IT ACT. FUR THER, A FINAL OPPORTUNITY LETTER WAS ISSUED TO THE APPLICANT THROUGH ITBA PORTAL ON 06/1 1/2019 TO UPLOAD YEAR WISE DETAILS OF ACTIVITIES CARRIED OUT IN LAST THREE YEA RS WITH EXPENDITURE INCURRED AND SUPPORTING CREDIBLE EVIDENCES ALONGWITH COPIES OF R ELEVANT BANK ACCOUNTS ON OR BEFORE 13/11/2019. HOWEVER, THE APPLICANT HAS NOT R ESPONDED TO THE FINAL OPPORTUNITY LETTER TILL DATE. EVEN ON PERUSAL OF FINANCIAL STAT EMENTS OF LAST THREE YEARS, IT IS SEEN THAT THE APPLICANT HAS NOT MADE ANY EXPENDITURE ON THE OBJECTS OF THE TRUST. MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 13 DUE TO CHANGE OF INCUMBENT OF OFFICE, FURTHER OPPOR TUNITY UNDER THE PROVISIONS OF SECTION 129 OF THE INCOME TAX ACT, 1961 WAS GIVEN T O THE APPLICANT REQUESTING IT TO UPLOAD ITS COMPLIANCE BY 25/11/2019. HOWEVER, THE A PPLICANT HAS NOT RESPONDED TO THE SAME TILL DATE. THEREFORE, THE GENUINENESS OF T HE CHARITABLE NATURE OF ACTIVITIES IS NOT ESTABLISHED. 4. CONSIDERING THE ABOVE FACTS, IT IS SEEN THAT THE APPLICANT HAS NOT FURNISHED THE REQUISITE DETAILS ON THE ITBA PORTAL FULLY OR COMPL IED TO THE NOTICE DATED 15-07-2019 TO PROCESS THE APPLICATION FOR GRANTING REGISTRATIO N U/S 12AA OF THE INCOME TAX ACT, 1961. THEREFORE, I AM NOT SATISFIED ABOUT THE CHARI TABLE NATURE OF OBJECTS AS WELL AS THE GENUINENESS OF ACTIVITIES OF THE TRUST / INSTIT UTION AND HENCE, THE REQUEST FOR GRANT OF REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, 196 1 CANNOT BE ACCEPTED. 5. IN VIEW OF THE ABOVE, I HEREBY REJECT THE APPLIC ATION FOR GRANT OF REGISTRATION U/S 12AA(1)(B)(II)OF THE INCOME TAX ACT, 1961. 13. WE HAVE HEARD BOTH THE PARTIES AND PERUSED TH E RECORDS. THE SUBMISSIONS OF THE LD. COUNSEL OF THE ASSESSEE ARE IDENTICAL TO THE ON E HEREINABOVE. IN HIS WRITTEN SUBMISSIONS, LD. COUNSEL OF THE ASSESSEE HAS MADE F OLLOWING FURTHER SUBMISSIONS:- SAME GROUNDS AND IDENTICAL FACTS ARE INVOLVED IN MI THALAL AND BHARAT CRICKET AND SPORTS TRUST AS COMPARED TO ITA NO 1116/M/2020 APAR T FROM OBJECT OF THE TRUST WHICH ARE FURNISHED AS UNDER: OBJECTS OF MITHALAL AND BHARAT CRICKET AND SPORTS T RUST ARE: A) SUPPORTING YOUNG SPORTSMEN AND WOMEN WITH GRANT S WITH THE AIM OF PROVIDING SUPPORT FOR ASPIRING YOUNG SPORTSMEN AND WOMEN WHO MAY NOT OTHERWISE HAVE THE OPPORTUNITY TO LIVE THEIR DREAMS. B) PROVIDING SPECIALIST COACHING AND OTHER TECHNIC AL AND PROFESSIONAL SUPPORT FOR A SELECTED GROUP OF EMERGING AND DEVELOPING SPORTSMEN AND WOME N EACH YEAR. C) IN ENGAGING YOUNG PEOPLE AND FAMILIES LIVING IN RURAL COMMUNITIES IN REGULARLY PLAYING AND WATCHING CRICKET AND OTHER SPORT, PUTTING SPORT AT THE HEART OF THE COMMUNITY. D) CREATING EXCESS FOR DISADVANTAGED YOUNG PEOPLE T O CRICKET 85 SPORT ACTIVITIES, E) ENCOURAGING ADULTS TO REGULARLY PARTICIPATE IN SPORT AS VOLUNTEER CRICKET & OTHER SPORT COACHES. F) CREATING OPPORTUNITIES FOR DISABLED YOUNG PEOP LE TO PARTICIPATE IN CRICKET & OTHER SPORT ACTIVITIES, G) MAKING PROVISION OF EQUIPMENT AND FACILITIES F OR SMOOTHLY CARRYING OUT THE OBJECTS OF THE SAID TRUST, H) DEVELOPING CRICKET 85 OTHER SPORT ACROSS ALL DIS CIPLINES AND ALL LEVELS IN INDIA WITH A SPECIAL FOCUS ON SPORT INFRASTRUCTURE AND EQ UIPMENT FOR DISADVANTAGED COMMUNITIES, MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 14 I) PROMOTION OF CRICKET & OTHER SPORT TO BE PLAYE D IN ACCORDANCE WITH THE HIGHEST STANDARD, J) ORGANIZE, AUTHORIZE AND CONTROL CRICKET 85 OTHER SPORT TOURNAMENTS AND LEAGUES, K) APART FROM THE ABOVE AND WITHOUT PREJUDICE TO T HE ABOVE OBJECTS THE ACTIVITIES WILL BE PURELY OF CHARITABLE NATURE FOR CRICKET AND OTHER SPORTS PURPOSE ONLY. SAME GROUNDS AND IDENTICAL FACTS ARE INVOLVED IN MITHAJAL AND BH ARAT EDUCATION AND KALAKAR TRUST AS COMPARED TO ITA NO 11I6/M/2020 APART FROM OBJECT OF THE TRUST WHICH ARE FURNISHED AS UNDER: OBJECTS OF MITHALAL A ND BHARAT EDUCATION AND KALAKAR TRUST ARE: A) SUPPORTING YOUNG KALAKARS (ARTISTS) WITH GRANTS WITH THE AIM OF PROVIDING SUPPORT FOR ASPIRING YOUNG KALAKARS I.E MEN OR WOMEN WHO MAY NO T OTHERWISE HAVE THE OPPORTUNITY TO LIVE THEIR DREAMS. B) PROVIDING SPECIALIST COACHING AND OTHER TECHNICA L AND PROFESSIONAL SUPPORT FOR A SELECTED GROUP OF EMERGING AND DEVELOPING VARIOUS A RTISTS EACH YEAR. C) ENGAGING YOUNG PEOPLE AND FAMILIES LIVING IN RU RAL COMMUNITIES IN LEARNING VARIOUS ARTS AT THE HEART OF THE COMMUNITY, D) CREATING OPPORTUNITIES FOR DISABLED YOUNG PEOPLE TO EXPLORE THEIR ARTS. E) MAKING PROVISION OF EQUIPMENT AND FACILITIES FOR SMOOTHLY CARRYING OUT THE OBJECTS OF THE SAID TRUST. F) DEVELOPING VARIOUS ARTS ACROSS ALL DISCIPLINES AND ALL LEVELS IN INDIA, G) PROMOTION OF VARIOUS ARTS IN ACCORDANCE WITH TH E HIGHEST STANDARD. H) ORGANIZE, AUTHORIZE AND CONTROL VARIOUS ART COMP ETITIONS AT STATE, DISTRICT, NATIONAL AND INTERNATIONAL LEVEL. I) TO OPEN AND OPERATE SCHOOL, COLLAGE, HOSTEL, LIBRARY, EDUCATION CENTER, VOCATIONAL CENTER, COACHING CENTER, LAB, AND ANY OT HER EDUCATIONAL INSTITUTION, J) GRANT SCHOLARSHIP TO STUDENT FOR EDUCATION AND ACCOMMODATION, K) APART FROM THE ABOVE AND WITHOUT PREJUDICE TO TH E ABOVE OBJECTS THE ACTIVITIES WILL BE PURELY OF CHARITABLE NATURE FOR EDUCATION AND PROMO TION OF ART & ARTIST PURPOSE ONLY. FURTHERMORE THE APPELLANT TRUST HAS MADE AN EXPENDI TURE FOR PROVIDING SCHOOL FEES OF VARIOUS CHILDRENS WHICH IS AN OBJECT OF THE SAID T RUST (PAPER BOOK PAGE NO 44 TO 92). 14. UPON CAREFUL CONSIDERATION, WE NOTE THAT THERE IS A DIFFERENCE IN THE ORDER OF LD.CIT IN THESE CASES, HERE AS AGAINST THE ONE DEAL T WITH BY US IN ITA NO.1114/MUM/2020 ABOVE. IN THESE CASES, THE LD.CIT HAS RAISED THE OBJECTION THAT ASSESSEE HAS NOT COMPLIED WITH THE REQUIREMENTS REG ARDING INFORMATION AND CLARIFICATION AND HENCE, HE WAS REJECTING THE REGIS TRATION REQUEST. HE HAS ALSO MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 15 COMMENTED UPON THE NON COMPLIANCE OF THE REQUIREMEN TS. IN THIS REGARD, AS NOTED ABOVE LD. COUNSEL OF THE ASSESEE SUBMITTED THAT ASS ESSEE HAS GIVEN ALL THE INFORMATION AND CLARIFICATION AND THE LD.CIT HAS ER RED IN NOT CONSIDERING THE SAME. IT IS OBSERVED THAT FROM THE ORDERS OF LD.CIT WHEREIN LD.CIT HAS NOTED THAT THERE IS A CHANGE IN THE INCUMBENT OF THE OFFICE. IN OTHER WOR DS, THERE IS A CHANGE IN THE LD.CIT WHO ORIGINALLY CONSIDERED THE REQUIREMENTS OF THE R EGISTRATION. HENCE, IN OUR CONSIDERED OPINION, THE SUBMISSIONS OF LD. COUNSEL OF THE ASSESSEE THAT ASSESSEE HAS DULY COMPLIED WITH THE REQUIREMENTS NEED TO BE EXAM INED AT THE LEVEL OF LD.CIT. ACCORDINGLY, WE DIRECT THE LD.CIT TO EXAMINE THE IS SUE DENOVO AFTER CONSIDERING THE SUBMISSIONS OF THE LD. COUNSEL OF THE ASSESSEE. WE MAKE IT CLEAR THAT NO ADVERSE INFERENCE CAN BE TAKEN ON THE GROUND THAT ASSESSEE HAS NOT COMMENCED ANY ACTIVITY AS ALREADY HELD BY US IN ITA NO. 1114/MUM/2020 ABOVE O N THE TOUCHSTONE OF HONBLE SUPREME COURT DECISION REFERRED THEREIN. ACCORDINGL Y, THESE APPEALS ARE REMITTED TO THE FILE OF LD.CIT TO DECIDE THE SAME AFRESH, AFTER GIVING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. 15. IN THE RESULT, ITA NO.1114/MUM/2020 IS ALLOWE D AND ITA NO.1115 & 1116/MUM/2020 ARE ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 30/08/2021 SD/- SD/- (PAVAN KUMAR GADALE) (SHAMIM Y AHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 30/08/2021 THIRUMALESH, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) MITHALAL AND BHARAT EDUCATION AND KALAKAR TRUST 16 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR) ITAT, MUMBAI