Bhausaheb Harnarayan Rathi Bahuuddeshiya Vikas Foundation,, Jalgaon Commissioner of Income-tax, (Exemption),, Pune

The Income Tax Appellate Tribunal heard an appeal from the Bhausaheb Harnarayan Rathi Bahuuddeshiya Vikas Foundation regarding the denial of registration under Section 12AA. The Commissioner of Income-tax (Exemption) refused registration because the foundation had not incurred any expenditure on charitable activities in the last three financial years and had not declared income from Fixed Deposits in its accounts. The Tribunal reviewed the case based on these observations.

IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH “A”, PUNE – VIRTUAL COURT

BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND
SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER

ITA No. 1313/PUN/2019

Bhausaheb Harnarayan Rathi
Bahuuddeshiya Vikas Foundation,
Ramhari Niwas, Parekh Park,
Onkar Nagar, Jalgaon
PAN : AAATB3441L
Appellant 

Vs. 

CIT (Exemption),
Pune
Respondent

ORDER

This appeal by the assessee emanates from the order passed by the CIT(Exemption), Pune on 24-07-2019.

2. The only issue raised in this appeal is against the denial of registration by the ld. CIT(Exemption) u/s 12AA of the Incometax Act, 1961 (hereinafter also called `the Act’).

3. Briefly stated, the facts of the case are that the assessee was set up in 1999 by claiming itself as a Charitable and educational trust. The assessee e-filed application for its registration u/s.12A of the Act on 31-01-2019. The ld. CIT(E) called for certain details. On perusal of such details, he observed that during the last three financial years ending on 31-03-2016, 31-03-2017 and 31-03-2018, the assessee did not incur any expenditure on charitable activities. He further observed that the assessee had FDRs of Rs.2.00 crore in the F.Y. 2015-16 but income was not declared in the Income and Expenditure Account. Similar position was found anent to the FDRs and income not offered for earlieryears as well. That is how, the ld. CIT(E) came to the conclusion that the assessee did not satisfy the nature of activities as charitable for enabling granting of the registration u/s.12AA and thus turned down the registration. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.

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