SHRI GANESH MANDIR DE vs. THAN ,SANGLIVS.THE CIT EXEMPTION, PUNE

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ITA 1301/PUN/2026Status: DisposedITAT Pune23 July 20267 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemption) rejected the application on hyper-technical grounds without properly examining the documents submitted by the assessee. The objects and activities of the trust were found to be charitable in nature.

What were the facts?

The assessee, a religious trust, applied for registration under Section 12A(1)(ac)(vi)-ITEM(B). The CIT(Exemption) rejected the application citing deficiencies in submitting the trust deed and lack of credible evidence for charitable activities, despite the trust being registered with the Charity Commissioner and having modest receipts.

What were the issues?

Whether the rejection of registration under Section 12A by the CIT(Exemption) was justified based on technical deficiencies and the genuineness of the trust's charitable activities.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI PAVAN KUMAR GADALE & SHRI Dr. DIPAK P. RIPOTEShri Ganesh Mandir Devsthan,

For Respondent: Shri Amit Bobde, CIT-DR

आदेश /ORDER

PER Dr. DIPAK P. RIPOTE, A.M :

This is an appeal filed by the Assessee against the order of the Learned Commissioner of Income Tax (Exemption), Pune [Ld.CIT(E)] rejecting registration u/s 12A(1)(ac)(vi)-ITEM(B) of the Income Tax Act, 1961.

2.

There was a delay of 23 days in filing of the appeal before this Tribunal. The assessee filed an affidavit explaining the reasons for delay. We have perused the affidavit and convinced that there was sufficient cause for delay. Substantial justice is more important than procedural delay. No assessee is going to gain by filing the appeal belatedly. Accordingly, delay condoned.

ITA No. 1301/PUN/2026 Submissions of Ld. AR : 3. In this case, the Ld. AR filed an elaborate paper book containing 57 pages. The Ld. AR submitted that the assessee is a trust which performing charitable activities. The trust is managed by local trustees and does not have any professional administrative or accounting set-up. The annual gross receipts of the trust are very modest, being only Rs.5,19,591/- for FY 2023-24 and Rs.5,32,161/- for FY 2024-25. The trust survives on small voluntary contributions from devotees and utilizes its limited resources solely for religious and charitable purposes. The trust neither carries on any commercial activity nor possesses substantial financial resources. Owing to its small size, limited receipts and lack of professional guidance, certain procedural and documentary compliances could not be completed during the proceedings before the Ld. CIT(Exemption). Such inadvertent procedural deficiencies should not result in denial of registration to an otherwise genuine religious trust. The assessee filed an application in Form No.10AB on 11.06.2025 seeking registration u/s 12AB of the Act.

3.1 The Ld. AR pleaded before this Tribunal that in view of the facts and circumstances stated above, the Tribunal may be set aside the impugned order dated 10.12.2025 passed by the Ld. CIT(Exemption), Pune rejecting the application in Form No.10AB and holding that the assessee is a genuine religious and charitable trust carrying on activities in accordance with its objects. He further pleaded before this Tribunal that direct the Ld. CIT(Exemption), Pune to grant registration u/s 12AB of the Act.

ITA No. 1301/PUN/2026 Submissions of Ld. DR : 4. The Ld. DR relied on the order of the Ld. CIT(Exemption).

Findings and Analysis :

5.

We have heard both the parties and perused the records. In this case, the assessee trust had filed an application in Form No. 10AB for obtaining registration u/s 12A of the Act on 11.06.2025. The Ld. CIT(Exemption) has rejected the assessee’s application vide order dated 10.12.2025.

6.

We have carefully studied the order of the Ld. CIT(Exemption), it is observed that the Ld. CIT(Exemption) had received relevant submissions filed by the assessee in para 4 of the said order. The Ld. CIT(Exemption) has mentioned as under: "(i) It is seen that you have furnished Memorandum of Agreement / trust Deed of Shri Ganesh Mandir Devsthan. You ought to be submit the copy of instrument creating the trust or establishing the institution / document evidencing the creation of the trust or establishment of the institution (trust deed / MoA). The trust deed/MOA were required to be submitted alongwith the application itself. However, it is seen that you have not furnished the authentic copy approved by Charity Commissioner. Kindly furnish the same.”

7.

Thus, the Ld. CIT(Exemption) in para 4 admitted that the assessee had furnished copy of trust deed. In spite of that in the same para, the Ld. CIT(Exemption) says that the trust deed/MoA was required to be submitted along with application. This itself explains that the Ld. CIT(Exemption) has not bothered to read the documents filed by the assessee. Every place it is trust deed/MoA, it means the Ld. CIT(Exemption) has not seen the documents. Be that as it may be, the assessee had filed copy of trust deed.

ITA No. 1301/PUN/2026 8. The assessee has also filed copy of certificate of registration issued by the Assistant Charity Commissioner, Sangli dated 01.07.2000. It means the trust was duly registered with the Assistant Charity Commissioner, Sangli.

9.

The Ld. CIT(Exemption) in para 4(ii) has mentioned as under : “(ii) It is seen that no credible evidence is furnished in support of the activities claimed to have been carried out except some photographs of Ganesh Utsav Celebration and considering the fact that a very meagre expenditure is shown on objects (Ganesh Utsav Celebration) as compared to expenditure on establishment and the satisfaction about the genuineness of activities could not be arrived at. Kindly furnish your explanation with credible evidences.”

10.

The assessee had carried out certain charitable activities and the assessee had filed photographs. However, the Ld. CIT(Exemption) mentioned that there was meager expenditure on objects. We failed to understand that when the Income Tax Act has not laid down any condition of quantum of expenditure to be incurred by the assessee for charitable activities how the Ld. CIT(Exemption) can state that there was meager expenditure. What the Ld. CIT(Exemption) was required to examine was whether the expenditure was incurred for charitable purpose or not. The Ld. CIT(Exemption) has accepted that there was certain expenditure incurred for charitable purpose. The assessee filed copies of those activities. Even before us, the Ld. AR has filed copies of those photographs to demonstrate charitable activities performed by the assessee.

11.

Thus, in this case, it is a fact that as per trust deed the objects of the assessee are charitable in nature. The activities of the assessee as appearing in the photographs as mentioned

ITA No. 1301/PUN/2026 by the Ld. CIT(Exemption) are charitable activities. Therefore, there was no reason for Ld. CIT(Exemption) to reject the assessee’s application when the objects of the assessee are charitable, activities of the assessee are charitable and there is no violation of any other law by the assessee. In this case, the Ld. CIT(Exemption) has also stated the application filed was under wrong sub-clause. This kind of approach of the Ld. CIT(Exemption) is hyper technical. The Ld. CIT(Exemption) should have considered the application in totality. There are various decisions of the various Tribunals wherein the Tribunals have always held that such hyper technical approach should not be there and registration should not be rejected on hyper technical reasons. In this case, we have already mentioned that the assessee had filed trust deed, the assessee filed registration certificate issued by the Assistant Charity Commissioner, Sangli. The assessee had filed written note on their activities performed along with photographs to demonstrate the activities of the assessee trust. The assessee had also filed list of expenditure. In these facts and circumstances of the case, we are convinced that the objects of the assessee are charitable, activities of the assessee are charitable and there is no violation of any other law by the assessee as noted by the Ld. CIT(Exemption).

12.

Section 12AB reads as under : “12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,— (a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years;

ITA No. 1301/PUN/2026

(b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of the said clause,— (i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about— (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub- clause (i),— (A) pass an order in writing registering the trust or institution for a period of five years; or (B) if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard; (1) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (v) of clause (ac) of sub-section (1) of section 12A rejecting such application and also cancel- ling its registration; (II) in a case referred to in sub-clause (iv) or in item (B) of sub-clause (vi) of sub-section (1) of section 12A, reject- ing such application, after affording a reasonable opportunity of being heard;]”

13.

Thus, as per section 12AB of the Act, the Ld. CIT(Exemption) needs to verify the genuineness of the activities, objects of the activities and violation of any other Act. In this case, we have already noted above that the assessee’s objects are charitable in nature, activities are charitable in nature. The Ld. CIT(Exemption) has not pointed out in violation of any other law applicable. However, the Ld. CIT(Exemption) has rejected

ITA No. 1301/PUN/2026

the application on technical ground of not mentioning correct sub-clause. In these facts and circumstances of the case, we set aside the order of Ld. CIT(Exemption) to Ld. CIT(Exemption) for de-novo adjudication. The Ld. CIT(Exemption) shall provide opportunity of hearing to the assessee.

14.

In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open Court on 23rd July, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER

पुणे/Pune; दिन ांक/Dated : 23-07-2026 Ravi Kumar

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune

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