SARASWATI MEMRORIAL TRUST,DELHI vs. CIT EXEMPTION, DELHI
Income Tax Appellate Tribunal, “G” BENCH, DELHI
Before: MS. MADHUMITA ROY&
PER MADHUMITA ROY, JM:
The instant appeal filed by the assessee is directed against the order passed by the Ld. CIT(E), Delhi dated 27.09.2024 whereby and whereunder an application made by the trust dated 30.03.2024 in Form
10AB for approval under Section 80G(5)(iii) of the Act was rejected.
However, the provision of Registration granted to the trust on 12.03.2022
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M/s Saraswati Memorial Trust issued in the period from 12.03.2022 to Assessment Year 2024-25 was also cancelled.
The assessee before us is a trust mainly undergoing charitable activities in the field of health, education and relief to poor. The assessee as per requirement filed the balance sheet and income and expenditure account of the trust and for the period of 01.04.2023 to 31.03.2024 along with annexures/schedule duly furnished before the CIT(E), copy of bank statement and bank book for the said period along with narrations of all entries, profile of all trustees, members of the trust were further submitted each copy whereof are duly annexed to the paper book filed before us. The profile balance sheet as on 31.03.2024 is appearing at page 60 and the income and expenditure account for the period from 01.04.2023 to 31.03.2024 is also appearing at page 61 of the paper book filed before us. It is the case of the assessee that the assessee carrying out charitable activities having been granted registration under Section 12AB/12A on 27.07.2017 and further registration under Section 12A(1)(ac)(id) granted on 12.03.2022 in the absence of violation of provision of Section 80G. the rejection of exemption by the CIT(E) is not sustainable. In this regard the assessee relied upon a judgment passed by the Hon’ble juri ictional High Court in the case of Director of Income 305 (Delhi) wherein in identical facts of the matter in the absence of any violation of clause (iv) of Section 80G(5) the order of setting aside the order passed by the Director of Exemption denying registration to the assessee under Section 80G of the Act passed by the Tribunal was upheld. Such fact of the matter and the ratio laid down by the Hon’ble Delhi High Court has not been able to be controverted by the Ld. DR
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M/s Saraswati Memorial Trust neither any deficit and/or violation in regard to the statutory compliance and/or mandate for grant of approval under Section 80G(5)(iii) of the Act has been pointed out. The impugned order of rejection of approval under Section 80G(5)(iii) of the Act and further the rejection of provisional registration granted on 12.03.2022 for the period 12.03.2022 to Assessment Year 2024-25 is, thus, found to be not sustainable, bad in law and therefore, quashed. The Ld. CIT(E) is directed to grant relief accordingly.
The appeal of the assessee is allowed.
Order pronounced in the open court on 21.08.2025 (Naveen Chandra) (Madhumita Roy)
ACCOUNTANT MEMBER
JUDICIAL MEMBER
Dated 21.08.2025
Rohit, Sr. PS