SHRI GURUSHANTHI DHAMA CHARITABLE TRUST ,BANGALORE vs. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), BANGALORE

PER KESHAV DUBEY, JUDICIAL MEMBER:

These appeals at the instance of the assessee are directed against the separate orders of ld. CIT(Exemptions), Bengaluru dated 22.03.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1074855823(1) rejecting the registration u/s 12AB of the Income Tax Act, 1961 (in short “The Act”) & dated 10/09/2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1080564190(1) rejecting the approval u/s 80G of the Act. Since the issue involved in both these appeals is common in nature, these are clubbed together, heard together and disposed of by this common order for the sake of convenience and brevity.

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 2 of 8 2.1 Perused the record as well as the affidavit of the assessee dated 10/10/2025 and having heard the ld. Counsel for the assessee as well as ld. D.R., it is perceived that explanation offered by the assessee in the affidavit dated 10/10/2025 is plausible and sufficient cause been shown by the assessee, which prevented them from filing the appeal within the prescribed period and accordingly, we are inclined to condone the delay of 128 days in filing the appeal before this Tribunal and admit the same for adjudication on merits.

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 3 of 8

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 4 of 8 5. Brief facts of the case are that assessee trust is constituted by way of Trust Deed dated 6.11.2021. The objectives of the trust are mainly service to the senior citizens, care for children, contribute to social forest and to increase green cover, service to nation, service to farming, contribute to needy and relief work. The assessee trust was granted provisional registration under sub-clause (vi) to clause (ac) of sub-section (1) of section 12A of the Act on 16.4.2022 vide Unique Registration No.(URN) : AAETG0168ME20221 effective from AY 2023-24 to AY 2025-26. The assessee trust was also granted provisional approval under clause (iv) of 1st proviso to sub-section (5) of section 80G of the Act on 30.5.2022 vide Unique Registration No.(URN) : AAETG0168MF20221 effective from 30.5.2022 to AY 2025-26. The assessee trust thereafter applied for final registration u/s 12AB of the Act as well as final approval u/s 80G of the Act and accordingly filed Form No.10AB on 21.9.2024 for registration u/s 12AB of the Act and on 4.3.2025 for approval u/s 80G(5) of the Act. On receipt of the application, the case of the assessee was assigned to the jurisdictional AO for verification. The JAO issued letters/notices through official mail/post calling for the details/documents. On perusal of the submissions made by the assessee, both Range Head and Jurisdictional AO did not recommend for registration. In view of the above, the assessee’s application in Form 10AB filed for registration u/s 12AB of the Act was rejected.

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 5 of 8 accordingly prayed that the case may be remitted back to the file of ld. CIT(Exemptions) to decide himself afresh in accordance with law.

8.1 Before proceeding further, it is apposite here to take note of relevant section of the Act for the purpose of its case, which reads as under: Procedure for fresh registration.

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) …………..

(b) where the application is made under sub-clause (ii) or sub- clause (iii) or sub-clause (iv) or sub-clause (v) 94[or item (B) of sub- clause (vi)] 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

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 6 of 8 (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,--

(I) 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 cancelling 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, rejecting such application, after affording a reasonable opportunity of being heard;

Thus, as per the above provisions, the ld. CIT(E) himself has to

call for such documents or information from the trust or institution

or make such inquiries as he/she thinks necessary in order to satisfy

himself/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. We are of the

considered opinion that the ld. CIT(E) has to pass an order in writing

after satisfying himself/herself about three elements viz., (i) the objects of the trust or institution,

(ii) the genuineness of its activities under item (A) and

(iii) Compliance of the requirements under item (B).

Thus, we are of the considered opinion that the ld. CIT (Exemptions) may make such inquiries as he thinks necessary for the purposes of

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 7 of 8 satisfying himself about the three elements as discussed above but the ultimate satisfaction must be of the ld. CIT (Exemptions) in granting/rejecting the registration. In the present case, the ld. CIT (Exemptions) completely relied solely on the satisfaction of the JAO & Range Head in rejecting the application by saying that they did not recommend for registration which in our opinion is against the intent of the Legislature.

8.2 Thus, we are of the considered opinion that it is only the ld. CIT (Exemptions) who has the authority to call for such documents or information from the trust or institution or make such enquiries as he or she thinks necessary in order to satisfy the conditions for granting registration. In the present case, the ld. CIT (Exemptions) grossly erred in rejecting the registration solely based on the recommendation of both Range Head as well as JAO. Before us, ld. A.R. of the assessee also contended that the ld. ITO (Exemptions) Ward-3, Bengaluru vide letter dated 17.12.2024 called for the details/particulars. In response to the same, the assessee vide letter dated 26.12.2024 had furnished all the details as called for. Further, the assessee in its letter also submitted that they will furnish any further additional information or clarification on hearing from the ld. ITO (Exemptions), Ward-3, Bengaluru. However, ld. CIT (Exemptions) without affording further opportunity of being heard passed the impugned order dated 22.3.2025 refusing to grant registration u/s 12AB of the Act holding that JAO did not recommend for grant of registration. In view of the above, considering the fact that before rejecting the registration u/s 12AB of the Act, the ld. CIT (Exemptions) did not grant the final opportunity of being heard & also there is no independent satisfaction of the ld. CIT (Exemptions) in rejecting the application filed for the registration, we in the interest of justice, equity and fair play deem it fit and proper to remit both the issue of registration u/s. 12AB of the Act to the file of ld.

ITA Nos.2206 & 2207/Bang/2026 Shri Gurushanthi Dhama Charitable Trust, Bengaluru Page 8 of 8 CIT(Exemptions) to decide a fresh in accordance with law. Further, considering the fact that during the 80G approval proceedings, the assessee could not responded to any of the notices issued & failed to appear before the ld. CIT(E) and submit the necessary details/documents as called for, we also deemed fit to remit the entire issue of approval u/s. 80G(5) of the Act to the file of the ld. CIT(E) to decided a fresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to co-operate with the proceedings and submit the all the necessary documents/ records/ evidences/ certificates/ accounts/report to substantiate the genuineness of the activity of the trust and other conditions as required under the respective sections. It is ordered accordingly.

Order pronounced in the open court on 29th May, 2026

Sd/- Sd/- (Prashant Maharishi) (Keshav Dubey) Vice President Judicial Member

Bangalore, Dated 29th May, 2026. VG/SPS

Copy to:

Asst. Registrar, ITAT, Bangalore.