THE GUARDIANS OF HUMANITY CHARITABLE TRUST,PANCHKULA, HARYANA vs. COMMISSIONER OF INCOME TAX(EXEMPTIONS), CHANDIGARH

PER LALIET KUMAR, JM

Both the appeals have been filed by the assessee against the separate orders of the Commissioner of Income Tax (Exemptions)

Chandigarh [in short ‘the CIT (E)’] dated 28.02.2026 passed for assessment year 2027-28. Both the appeals were heard together and are being disposed of by this common order for the sake of convenience and brevity.

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filed an application in Form No. 10AB on 29.09.2025 seeking

registration under section 12AB of the Income-tax Act, 1961. During

the course of examination, the learned CIT (Exemptions) observed

that the Income & Expenditure Account of the Trust did not disclose

any substantial charitable activities. Accordingly, a show-cause

notice dated 09.02.2026 was issued calling upon the assessee to furnish documentary evidence such as activity reports, photographs,

newspaper clippings, bills, vouchers and other supporting material

to establish the genuineness of its charitable activities.

such as relief to the poor, Langar Seva and medical assistance had in fact been undertaken during the preceding years, but the expenditure was incurred directly by the trustees and members from their personal funds and voluntary contributions, without routing

the transactions through the Trust's bank account. It was also submitted that the Trust had no significant online presence and,

therefore, the absence of internet search results could not be construed against the genuineness of its activities.

ITA-1161 & 1163/CHD/2026 A.Y. 2027-28 3

recorded in the books of account and reflected in the financial

statements. Since the alleged activities were stated to have been carried out outside the accounting framework of the Trust and were unsupported by verifiable documentary evidence, bills, vouchers or beneficiary details, the genuineness of the activities could not be verified. Consequently, the application for registration under section 12AB was rejected vide order dated 28.02.2026. 5. The learned Authorised Representative submitted that the learned CIT (Exemptions) had erred in rejecting the application

merely because the charitable expenditure was not reflected in the Income & Expenditure Account of the Trust. It was contended that the Trust had actually carried out charitable activities including

distribution of food through Langar Seva, relief to poor persons and providing medical assistance to needy individuals. However, these

activities were financed directly by the trustees and members from their personal resources and voluntary contributions and, therefore,

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that the Trust operates at the grassroots level without maintaining

an official website or significant digital presence and, therefore, the absence of internet search results cannot be treated as evidence

against the genuineness of its charitable objects or activities.

According to the learned AR, the Trust had genuinely pursued its charitable objectives and was entitled to registration under section 12AB.

that registration under section 12AB requires the competent

authority to satisfy itself regarding the genuineness of the activities

of the Trust. In the present case, the financial statements did not disclose any meaningful charitable expenditure or voluntary

contributions, and no verifiable documentary evidence such as bills,

vouchers, beneficiary records or audited financial entries had been ITA-1161 & 1163/CHD/2026 A.Y. 2027-28 5

produced to substantiate the alleged charitable activities.

through personal funds of trustees, without routing the receipts and expenditure through the Trust's books of account, cannot be verified

under the statutory framework and, therefore, cannot form the basis

for recording satisfaction under section 12AB. It was accordingly

submitted that the learned CIT (Exemptions) had rightly rejected the application for registration after considering the material available

on record, and the order deserved to be upheld.

(Exemptions) on the ground that the assessee had failed to establish

the genuineness of its charitable activities through verifiable

documentary evidence and proper books of account.

CIT (Exemptions) has primarily rejected the application on the ITA-1161 & 1163/CHD/2026 A.Y. 2027-28 6

premise that the charitable activities claimed to have been undertaken by the assessee were not reflected in its books of account

and the Income & Expenditure Statements, as the expenditure was allegedly incurred directly by the trustees from their personal funds.

The assessee has also claimed to have carried out various charitable

activities such as relief to the poor, Langar Seva and medical

assistance and has sought to explain the absence of accounting

entries on the ground that such expenditure was not routed through

the Trust's bank account.

examination of the evidence which the assessee proposes to produce

in support of its charitable activities. Since the issue goes to the root

of the grant of registration under section 12AB, the interest of justice

would be better served if the matter is restored to the file of the ITA-1161 & 1163/CHD/2026 A.Y. 2027-28 7

learned CIT (Exemptions) for a fresh adjudication after granting

adequate and effective opportunity of hearing to the assessee.

and producing complete documentary evidence before the statutory

authority at the first instance. The present remand has become

necessary largely because of the failure on the part of the assessee

to place complete and verifiable material before the learned CIT

(Exemptions). Such conduct has resulted in avoidable litigation and unnecessary consumption of judicial time.

the matter to the file of the learned CIT (Exemptions) with a direction

to examine the application afresh in accordance with law after

considering all documentary evidence that may be produced by the assessee and after affording reasonable opportunity of being heard.

The assessee shall fully cooperate in the proceedings and shall produce complete books of account, supporting vouchers, evidence

of charitable activities and such other material as may be called for by the learned CIT (Exemptions).

ITA-1161 & 1163/CHD/2026 A.Y. 2027-28 8

Thousand only) in each case, with the Poor Patient Welfare Fund,

Post Graduate Institute of Medical Education & Research (PGIMER),

Chandigarh, within 30 days from the date of receipt of this order.

Proof of such deposit shall be furnished before the learned CIT

(Exemptions) at the commencement of the remand proceedings.

Failure to comply with this direction shall entitle the learned CIT

(Exemptions) to proceed with the matter in accordance with law.

is remanded to the file of the learned CIT (Exemptions) for fresh

adjudication in the light of the observations made hereinabove. The appeals of the assessee are allowed for statistical purposes, subject

to the payment of the aforesaid costs.

Order pronounced on 14.07.2026. (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER “Poonam”

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आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : अपीलाथ"/ The Appellant