Laxmi Prasad Sahu ORDER
Laxmi Prasad Sahu, Member (A)
1. This appeal is filed by the assessee against the DIN & Order No. ITBA/EXM/F/EXM45/2023-24/1052236733(1) dated 20.4.2023 of the CIT(Exemptions), Bangalore on the following grounds:-
"1. The appellant does not believe that it has to inform CBDT under section 11(1)(c) as section 11 is not applicable to it for earlier periods.
2. All other provisions of the IT Act would apply as if it an AOP and not as a charitable trust. The question of seeking approval from CBDT under section 11(1)(c) does not arise.
3. In spite of pointing out that the Appellant was carrying on activities and filing returns as an AOP, and paying taxes, the Assessing Authority has raised frivolous objection and has denied registration under section 12AA of the Act, although the Appellant fulfils all conditions required to obtain the registration."
2. The brief facts of the case are that the assessee is a trust registered under the Indian Trusts Act, 1882 on 26.03.2014. The assessee filed application in Form 10A on 28.04.2021 along with documents for obtaining registration u/s. 12AA. A provisional registration was granted on 28.05.2021. Thereafter the assessee filed application in Form 10AB for registration u/s. 12AB of the Act. The CIT(Exemptions) [CIT(E)]issued notice and the assessee filed certain details. On verification, it was noticed that the assessee carried out the activities outside India and expended funds on the following projects:-
(i) Study on Girls Landscaping in Nepal, Bangladesh and Pakistan.
(ii) Flamingo Research study with Adolescents Girls in Nepal & India.
(iii) UNDOC: Rehabilitation and Empowerment of Nepali Women.
3. The assessee was provided opportunity to provide a copy of the Special Order of the Board for conducting activities outside India. The assessee submitted that the trust has undertaken many projects relating to general public utility. Since some of the activities were conducted outside India, it has been filing returns as AOP and paying taxes regularly. The trust has not undertaken any activities outside India during those years and therefore trust has not sought permission u/s. 11(1)(c). The trust undertakes to seek permission for spending for trust activities in India during next two years. The CIT(E) observed, however, in order to carry out activities outside India, permission is required from the Board as per section 11(1)(c) of the Act. Since the assessee failed to produce the permission from the Board and other documents regarding genuineness of the activities of the trust and compliance in terms of section 12AB(1)(b)(i & ii) of the Act, the application for registration u/s. 12AB was rejected by the CIT(E). Aggrieved, the assessee is in appeal before the Tribunal.
4. The ld. AR submitted that section 11(1)(c) of the Act is not applicable in the present facts of the case because the assessee has not undertaken any activities outside India. He referred to the trust deed as well as activities carried out by the trust placed at pages 21 to 34 of the Appeal Set (AS). He also referred to the objects clause of the trust deed which are in the nature of charitable activities and submitted that the assessee has never claimed any exemption in its returns and paid taxes on the income earned every year. Therefore........