Denial of Registration of Trust on the basis that the trust has not been carrying out charitable act as per the stated objects

IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH, “A”, CHANDIGARH

BEFORE SHRI N.K. SAINI, VICE PRESIDENT &
SHRIR.L NEGI, JUDICIAL MEMBER

ITA No.258/CHD/2020
(U/s 12AA (1)(b)(i)

Har Nihal Charitable Trust,
H.No.68, Sector 5,
Chandigarh 16009 (U.T)
PAN NO: AABTH4603D
Appellant 

Vs.

The CIT (Exemptions),
Chandigarh
Respondent

Hearing through video Conferencing

Assessee by : Sh. Sudhir Sehgal, Advocate
Revenue by : Smt. C. Chandrakanta, CIT

Date of Hearing : 26.04.2021
Date of Pronouncement : 23.07.2021

Order 

Per R.L. Negi, Judicial Member:

The appellant Trust has filed the present appeal against the order dated 12.3.2020 passed by Commissioner of Income Tax (Exemptions), Chandigarh [for short ’the CIT(E)’], vide which the Ld. CIT(E) has denied registration to the applicant Trust u/s 12AA(1)(b)(i) of the Income Tax Act, 1961 [for short ’the Act’].

2. Brief facts of the case are that the appellant Trust carrying on charitable activities applied for registration u/s 12AA of the Act, in Form 10A on 29.06.2016 before the CIT(E). The Ld. CIT(E) rejected the application and denied registration inter alia on the grounds that the applicant Trust has failed to establish that it has been carrying out charitable act as per the stated objects and that it had received huge donation amounting to Rs. 1.57 crore from M/s Mata Narayan Kaur Charitable Trust which appears to be a transfer of funds from a nonfunctional Trust. The appellant challenged the order passed by the Ld. CIT(E) before the ITAT. The coordinate Bench vide order dated 26.07.2017 partly allowed the appeal of the assessee and restored the issue relating to charitable activities carried out by the Trust to the file of the Ld. CIT(E) to reconsider the submissions of the applicant/appellant and decide the same afresh. In compliance thereof, the Ld. CIT(E) heard the appellant Trust and examined the record called for. However, again denied registration u/s 12AA of the Act. The appellant has filed the present appeal against the said order passed by the Ld. CIT(E)

3. The assessee has challenged the impugned order on the following grounds: - 

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