Mastering Trust Registration: Triumph over Name Mismatch

The article delves into the challenges faced by an assessee in obtaining registration under section 12A(1)(ac)(iii) of the Income-Tax Act, 1961. The primary issues revolve around a name mismatch and concerns related to the genuineness of the trust’s activities.

Table of Contents

Background

A brief overview of the registration application process and the provisional registration granted to the assessee for the period spanning from A.Y. 2023-24 to AY 2025-26.

Name Mismatch Controversy

The discrepancies in the name of the assessee as per PAN/Form No. 10AB compared to the Certificate of Registration issued by the Gujarat State Wakf Board. The show cause notice issued and the subsequent response by the assessee, including the acknowledgment receipt of a PAN application for correction.

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Assertion of Correct Name

The assessee’s argument for the correct name as “Surat Halai Memon Jamat and Halai Memon Jamat Kabrashatn.” The steps taken by the assessee to rectify the name in the PAN database and the plea for reconsideration by the CIT(E).

Genuineness Concerns

The CIT(E)’s observations on discrepancies in the trust’s stated objects and concerns about potential violations of section 13(1)(b). The rejection of the application under section 12A(1)(ac)(iii) by the CIT(E).

Legal Perspective

Analysis of the legal standpoint, emphasizing that the mismatch in name should not be a reason to deny trust registration. The directive for the CIT(E) to consider the corrected name and provide an opportunity for the assessee to submit the entire list of objects and clarify the genuineness of its activities.

Conclusion

The conclusion summarizes the key points, emphasizing the need for a fair consideration of the trust’s application, rectification of the name mismatch, and a thorough examination of the trust’s objects and activities.

Order and Outcome

An overview of the order pronounced on January 31, 2024, allowing the appeal for statistical purposes and providing a pathway for the assessee to address registration concerns.

This comprehensive exploration sheds light on the intricacies of trust registration and the importance of addressing challenges promptly for a favorable outcome.

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