IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Audyogik Nidhi Vishwast Sanstha The CIT (Exemption), Poona Pune

366, Narayan Peth, Limaye Vs.

Building, Laxmi Road, Pune – 411030 PAN: AAATA1619H (Appellant) (Respondent)

Assessee by : Shri Nikhil S Pathak Department by : Shri Amol Khairnar CIT-DR Date of hearing : 05-02-2025 Date of pronouncement : 30-04-2025

O R D E R

PER R. K. PANDA, VP :

This appeal filed by the assessee is directed against the order dated

12.08.2024 of the Ld. CIT (Exemption), Pune rejecting the application for registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and cancelling the provisional registration granted earlier.

2. Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 01.02.2024 for approval under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued through ITBA portal on 25.04.2024 requesting the assessee to upload certain information / clarification. The assessee in response to the same filed the various details. From the various documents submitted by the assessee, the Ld. CIT(E) noticed various discrepancies for which he issued another notice on 26.07.2024 communicating the discrepancies, in response to which the assessee responded to the same.

3. The Ld. CIT(E) noted that in response to the notice the assessee has given a note of activity of the trust which reads as under:

“The intent to establish trust was to make India self-sufficient and industrialized. It also proposed to generate employment on a large scale and bring India at par with the developed Nations. As the time passed, the requirements for the products of the Trust lowered because of the stiff competition. To beat this, the Trust proposed to set up a Plant with state of the art, latest technology which shall generate Toughen Glass which can be used in the Solar Panels and can be used at various other premises. The Trust aims to achieve the following with this viz.

a. Achieve sustainability b. Generate Employment on a large scale.

c. Manufacture products that are import substitutes, d. Offer eco-friendly products to contribute for sustainable environment.

e. Make itself vibrant with the changing economic avenues.

The Trust propose that it shall commence an activity for the manufacture of glass which is its core competence because of its existence since 1972."

4. In view of the above, he raised a query asking the assessee regarding the nature of activity. The assessee in response to the same contended that the object of the trust is to run industry to generate employment “6.1 In view of the above, a query was raised to the assessee regarding the nature of the activity. In reply to the query, the assessee contended that object of trust is to run industry to generate employment and to carry research in same field. It also provides help to needy for education. Till year 2005-06, it was catering need of Indian Railway by providing them glasses for signal mechanism which after invention of plastic stopped. The trust is very much operating for charitable objectives of providing employment. Also, trust has rented sheds for the purpose of survival. The trust further claimed that it was not into activity of manufacturing glass and was providing glass to Railway as mentioned before.”

5. However, the Ld. CIT(E) was not satisfied with the arguments advanced by the assessee and held that the activities of the trust are not charitable in nature for which he rejected the application for grant of registration u/s 12A and also cancelled the provisional registration granted earlier u/s 12AB of the Act by observing as under:

“7. The contention of the assessee is dul