S.13 attracts during Assessment, Not at Grant of Registration: ITAT restores matter to Grant Final Registration u/s 12AB

The Income Tax Appellate Tribunal has issued a significant ruling regarding Section 13's applicability during assessment versus registration under Section 12AB. The case involves determining the appropriate stage for considering violation of charitable trust provisions. The ITAT emphasized that Section 13 violations should be examined during assessment proceedings rather than at the registration stage. The tribunal directed the tax authorities to focus on granting registration based on stated charitable objectives and documentation. The decision clarifies the procedural aspects of trust registration and subsequent compliance assessment. The ruling provides important guidance for charitable organizations seeking registration under the Income Tax Act. This interpretation helps separate the registration process from detailed compliance examination, streamlining the administrative procedure for charitable institutions.