GUR AASRA TRUST,MOHALI vs. COMMISSIONER OF INCOME TAX, EXEMPTIONS, CHANDIGARH , CHANDIGARH

आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 337 & 338/CHD/2026 �नधा�रण वष� / Assessment Year: 2026-27 Gur Aasra Trust, The CIT (Exemptions), C/o Shri Tej Mohan Singh, Advocate Vs Chandigarh. # 527, Sector 10-D, Chandigarh. �थायी लेखा सं./PAN NO: AAATG2754M अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Tej Mohan Singh, Advocate Revenue by : Shri Manav Bansal, CIT DR Date of Hearing : 27.05.2026 Date of Pronouncement : 02.06.2026

PHYSICAL HEARING O R D E R PER LALIET KUMAR, JM

These two appeals have been filed by the assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as "the CIT(E)"] dated 04.02.2026 and 05.02.2026 pertaining to Assessment Year 2026-27 whereby the assessee was treated as a religious-cum-charitable trust for the purposes of registration under section 12AB of the Income Tax Act, 1961 and,

ITA No.337 & 338/CHD/2026 A.Y.2026-27 2

consequentially, approval under section 80G of the Act was

denied.

namely Gur Aasra Trust, is a trust engaged in activities relating

to the welfare of orphan children, destitute women, widows and

elderly persons. The trust has been in existence for more than

two decades and has been carrying out charitable activities from

its premises situated at Mohali. The assessee was originally

granted registration under section 12A of the Act with effect from

16.03.2000. Subsequently, registration under section 12A as

well as approval under section 80G were granted on 24.09.2021.

There is no dispute that the assessee has continuously enjoyed

registration under the provisions of the Act and there has been

no adverse finding recorded by the Revenue authorities

regarding the genuineness of its activities.

application seeking registration under section 12AB of the Act.

The Ld. CIT(E), after examining the application and material

available on record, issued Form No.10AD dated 04.02.2026

granting registration under section 12AB(1)(b) of the Act. In the

ITA No.337 & 338/CHD/2026 A.Y.2026-27 3

said registration order, the nature of activities of the assessee

was specifically mentioned as "Charitable" and registration was

granted for the assessment years 2027-28 to 2036-37. The

registration order further recorded that after considering the

application and the material available on record, the applicant

was found entitled to registration under section 12AB of the Act.

The said order forms part of the record before us. The

registration certificate specifically records the nature of

activities as "Charitable".

came to be issued by the Ld. CIT(E) whereby the earlier order

was sought to be rectified and the assessee was treated as a

religious-cum-charitable trust. Consequent to such

characterization, the assessee was also denied approval under

section 80G of the Act. Aggrieved by the aforesaid action of the

Ld. CIT(E), the assessee preferred the present appeals before the

Tribunal.

that the impugned orders are contrary to the material available

on record and suffer from complete non-application of mind. It

ITA No.337 & 338/CHD/2026 A.Y.2026-27 4

was submitted that the assessee has been carrying out

charitable activities for more than twenty-five years and has

consistently been recognized by the Department as a charitable

institution. Our attention was drawn to the registration granted

under section 12A with effect from 16.03.2000 and the

subsequent registration and approval under sections 12A and

80G granted on 24.09.2021. It was argued that there has been

no change whatsoever in the aims and objects of the trust and

the same objects have been examined repeatedly by the

Department while granting registrations from time to time.

the trust are to provide shelter, food, medical assistance,

education and rehabilitation to orphan children, widows,

destitute women and elderly persons. It was contended that the

trust caters to all sections of society without discrimination on

the basis of religion, caste or creed. It was pointed out that even

the land on which the institution is functioning was allotted by

the Greater Mohali Area Development Authority for charitable

purposes. It was argued that the activities carried out by the

trust are wholly charitable and there is not even a single activity

ITA No.337 & 338/CHD/2026 A.Y.2026-27 5

undertaken for the advancement of any particular religion.

Ld. AR submitted that no expenditure has been incurred by the

assessee on any religious activity. It was contended that the sole

basis adopted by the Ld. CIT(E) appears to be one clause in the

trust deed which provides for organizing Gurbani Kirtan

Samagams for the spiritual upliftment of the masses and

conducting religious, social and charitable activities. According

to the Ld. AR, the mere presence of such a clause in the trust

deed cannot determine the character of the institution,

particularly when the actual activities carried out by the trust

are entirely charitable in nature. It was submitted that there is

neither any place of worship maintained by the trust nor any

denominational religious activity carried out by it.

relied upon the impugned orders passed by the Ld. CIT(E).

However, during the course of hearing, the Ld. DR fairly

submitted that if the Tribunal finds that the issue has not been

examined in its proper perspective, the matter may be restored

to the file of the Ld. CIT(E) for fresh consideration after

ITA No.337 & 338/CHD/2026 A.Y.2026-27 6

examining the objects and activities of the trust.

the material available on record. The undisputed factual position

emerging from the record is that the assessee-trust has been

enjoying registration under the provisions of the Act since the

year 2000. There is nothing brought on record by the Revenue

to demonstrate that the objects of the trust have undergone any

material change since the grant of the original registration.

Similarly, there is no finding recorded by any authority that the

activities carried out by the assessee are not genuine.

considering the application filed under section 12AB and the

material available on record, granted registration to the assessee

vide Form No.10AD dated 04.02.2026. Significantly, in the said

order, the nature of activities was specifically recorded as

"Charitable". Thus, a conscious satisfaction stood recorded by

the competent authority that the assessee was carrying on

charitable activities and was entitled to registration under

section 12AB of the Act.

ITA No.337 & 338/CHD/2026 A.Y.2026-27 7

10.1 What is rather unusual is that on the very same date

another communication came to be issued whereby the assessee

was treated as a religious-cum-charitable trust. From the

material placed before us, we are unable to discern any fresh

material, any subsequent development, any enquiry report or

any objective basis which could justify such a departure from

the satisfaction already recorded by the authority while granting

registration. The impugned action appears to have been taken

primarily with reference to one clause contained in the trust

deed.

determined merely by isolating one clause from the trust deed.

What is required to be examined is the predominant object of the

institution and the actual activities carried out by it. The objects

and activities placed before us clearly reveal that the trust is

engaged in providing care and support to orphan children,

widows, destitute women and elderly persons. The activities are

public-oriented and are not confined to followers of any

particular religion. The record further does not indicate that the

assessee has incurred expenditure towards religious activities or

ITA No.337 & 338/CHD/2026 A.Y.2026-27 8

that it is engaged in propagating any particular faith.

despite repeated registrations granted by the Department over

the years, no adverse material has been brought on record to

justify a change in the characterization of the institution.

Consistency is an important facet of tax administration and any

departure from an earlier accepted position must be supported

by cogent material and detailed reasoning. Such exercise is

conspicuously absent in the impugned orders.

satisfaction contemplated under section 12AB is required to be

recorded by the prescribed authority after due examination of all

relevant facts and circumstances. Since the impugned order

does not reflect a detailed examination of the historical

registrations, actual activities, financial statements and the

dominant objects of the trust, we deem it appropriate, in the

interest of justice, to restore the matter to the file of the Ld.

CIT(E) for fresh adjudication.

ITA No.337 & 338/CHD/2026 A.Y.2026-27 9

taking into consideration the historical registration granted to

the assessee since the year 2000, the registration and approval

granted on 24.09.2021, the registration order dated 04.02.2026

wherein the nature of activities was recorded as charitable, the

trust deed, the financial statements and all other evidences that

may be placed on record by the assessee. The Ld. CIT(E) shall

pass a speaking and reasoned order in accordance with law after

affording reasonable opportunity of hearing to the assessee. The

exercise shall preferably be completed within six months from

the date of receipt of this order.

registration under section 12AB is restored to the file of the Ld.

CIT(E) for fresh adjudication. The grounds raised by the assessee

are allowed for statistical purposes.

15.1 Since the denial of approval under section 80G is

consequential to the characterization of the assessee as a

religious-cum-charitable institution and we have restored the

issue relating to registration under section 12AB to the file of

the Ld. CIT(E), the issue relating to approval under section 80G

is also restored to the file of the Ld. CIT(E) for fresh

ITA No.337 & 338/CHD/2026 A.Y.2026-27 10

consideration in accordance with law after adjudicating the

assessee's claim under section 12AB.

for statistical purposes

for statistical purposes. Order pronounced on 02nd June,2026.

Sd/- Sd/-

(MANOJ KUMAR AGGARWAL) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�/ CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File

सहायक पंजीकार/ Assistant Registrar