SUNDER LAL & SONS CHARITABLE TRUST,NEW DELHI vs. CIT(EXEMPTION), DELHI, NEW DELHI

The Ld. Counsel of the assessee argued during proceedings before us that the Ld. CIT(E) has not gone into details of charitable activities done by the trust and he has taken a very narrow view about the said provision. He has filed a written submission on this

Per contra the ld. DR relied on the order of the Ld. CIT(E). 4. We have considered the findings given by the CIT(E) in his order and we have also considered the arguments and written submission filed before us by the ld. Counsel of the assessee. 5. After going through the written submission and listening arguments of Ld. Counsel of the assessee we find that the action of Ld. CIT(E) in rejecting the application for registration u/s.12AB of the assessee trust is not justified because of the reason that the assessee trust is mainly engaged in the charitable activities for which it came into the existence. Maintaining a temple/ expenditure on religious activities has not been calculated by the CIT(E). In any case, expenditure upto 5 % of total expenditure may be allowed for such activities. Accordingly, the order passed by the Ld. CIT(E) cannot be sustained. Thus, the assessee’s appeal on this issue is allowed. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced in the on 19.08.2026.