SETH SHRI SATYANARAYAN BIRMIWALA FOUNDATION,BISSAU vs. CIT EXEMPTION, JAIPUR

P a g e | 1 ITA Nos. 1503 & 1504/JPR/2025 Seth Shri Satyanarayan Birmiwala Foundation IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,“A” BENCH, JAIPUR BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA Nos. 1503 & 1504/JPR/2025 (Assessment Year:2025-26)

Seth Shri Satyanarayan Vs. CIT Birmiwala Foundation Exemption, C/o Shakati Agro Products Jaipur Pvt. Ltd. Gangiyasa Road, Bissau S.O. Bissau, Jhunjhunu 331027 �थायीलेखासं./जीआइआरसं./PAN/GIR No: ABOCS2498C Appellant .. Respondent

Appellant by : Sh. Nitesh Kumar Gupta, CA Respondent by : Sh. Rajesh Ojha, CIT

Date of Hearing 24.03.2026 Date of Pronouncement 26.05.2026 O R D E R Per Sanjay Garg, Judicial Member: The captioned two appeals have been preferred by assessee against the separate order of Commissioner of Income Tax (Exemption), Jaipur (hereinafter referred to as “Ld. CIT(E)”) dated 15.09.2025. The

P a g e | 2 ITA Nos. 1503 & 1504/JPR/2025 Seth Shri Satyanarayan Birmiwala Foundation assessee in Appeal-ITA No.1503/JP/2025 is aggrieved by the action of the ld. CIT(E) in rejecting the application of the assessee for final/regular registration u/s 12A(1)(ac)(iii) of the of the Income Tax, Act 1961 (in short “the Act”) , whereas appeal- ITA No. 1504/JP/2025 is against the order of ld. CIT(E) against the rejection of the application for final/regular approval under clause (iii) of first proviso to Sub- Section (5) of Section 80G of the Act.

P a g e | 3 ITA Nos. 1503 & 1504/JPR/2025 Seth Shri Satyanarayan Birmiwala Foundation objects of assessee trust, there was clause of ‘buy back of shares and issue of dividend’; he, therefore, held that the assessee, being a section 8 Company, which is non-profit Company and engaged in the charitable activities, could not have such clause in its objects/ Memorandum of Association. For the aforesaid two reasons, the ld. CIT(E) held that the activities of the assessee trust were not genuine and he therefore, rejected the application of the assessee for regular registration u/s 12A/12AB of the Act. Consequently, he also rejected the application of the assessee for approval u/s 80G (5) of the Act. He also cancelled the provisional registration/approval granted to the assessee Company earlier, u/s 12A(1)(ac) and 80G (5) of the Act. 4. At the outset, the ld. Counsel for the assessee has invited our attention to page 7 of the paper book, which is the copy of the bank account statement, which shows that on 29.03.2025, the assessee trust had transferred a sum of Rs. 51,000/- to the bank account of one Shri. Dheeraj in the Bank of Baroda. The ld. Counsel for the assessee has further invited our attention to page 64 of the paper book which is a copy of invoice/receipt issued by the firm- Dheeraj and Rajesh Kumar, to the assessee relating to the cattle-feed for a sum of Rs. 51,000/-. Thereafter, he has relied on page 65 of the paper book to show that the assessee had given cattle feed to Sh. Krishan Goshala Birmi. The ld. Counsel, therefore, has submitted that the Assessee Company had not donated any sum of money to Sh. Krishan Goshala Birmi, rather, the assessee Company had purchased cattle feed from the said Firm Dhiraj

P a g e | 4 ITA Nos. 1503 & 1504/JPR/2025 Seth Shri Satyanarayan Birmiwala Foundation Rajesh Kumar, and, thereafter, the said feed was donated for serving the same to the cows at Shri Krishan Goshala. 5. So far as, the clause of ‘buy back and dividend’ in the Objects/Memorandum of Association of the assessee trust is concerned, the ld. Counsel has submitted that these were formal clauses written in the prescribed form for registration of a company. These clauses inadvertently, could not be struck out. However, the same are not otherwise, applicable to the assessee company, as the assessee company being section 8 company. He has further submitted that even after pointing out of the said defect by the ld. CIT(E), the assessee company immediately amended the memorandum of association to delete the said clauses and the copy of the amended objects/MOA had also been furnished before the ld. CIT(E). However, ld. CIT(E) did not consider the same. 10. The Ld. DR on the other hand has relied upon the findings of ld. CIT(E). 11.We have considered the rival submission and gone through the record. In this case, Ld. CIT(E) has rejected the application for regular registration u/s 12A of the Act, noting that the assessee Company has donated a sum of Rs. 51,000/- to a Goshala which is not registered u/s 12AB of the Act. Whereas, ld. Counsel for the assessee has demonstrated before us that in fact, assessee company had not donated the said sum of Rs. 51,000/-, rather, it had purchased cattle feed of the said amount, which was supplied to the Goushala for serving to the

P a g e | 5 ITA Nos. 1503 & 1504/JPR/2025 Seth Shri Satyanarayan Birmiwala Foundation cows. Therefore, the observations of the ld. CIT(E) that the assessee Company had donated Rs.51,000/- to a non-registered institution u/s 12A,is factually incorrect. Even otherwise, it cannot be said, that the activities of the assessee trust are not genuine. Even donating the sum of money for charitable purposes even to an institution which is not registered u/s 12A of the Act, cannot be said to be an activity which is not genuine, though, there is a bar for claiming deduction as application of income on such donation to an institution, which is not registered u/s 12A of the Act. But, the said fact may be relevant for denying the deduction to that extent at the time of assessment of income of the assessee trust, but under no circumstances, it can be a ground for holding that the activities of the assessee trust are non-genuine or for rejecting the application of the assessee trust for final registration u/s 12A of the Act. The assessee trust had purchased Cow-feed, which has been supplied to Sh. Krishan Goshala, Birmi, which in our view cannot be regarded as a non-charitable activity. 12.So far as the relevant clause of ‘buy back of shares and dividend’ in the in the Memorandum of Association of the assessee trust is concerned, the ld. Counsel for assessee has already demonstrated that the said clauses were formal clauses, which were otherwise irrelevant in the case of the assessee trust and the same also stood removed from the Memorandum of Association. 13.In view of this, the action of the ld. CIT(E) in rejecting the application on the aforesaid two grounds cannot be held to be justified. The impugned order of ld. CIT(E) in rejecting the application of the

P a g e | 6 ITA Nos. 1503 & 1504/JPR/2025 Seth Shri Satyanarayan Birmiwala Foundation Assessee Company u/s 12A/12AB is set aside and the ld. CIT(E) is directed to grant the assessee trust regular registration, if the same is otherwise, admissible to the assessee trust. Consequently, the impugned order of ld. CIT(E) in rejecting the application of the assessee under clause(iii) to first proviso to sub-Section (5) of Section 80G of the Act is also set aside and the matter is restored to the file of ld. CIT(E) to consider the said application of the assessee trust on merits. In the meantime, the provisional registration u/s 12A and provisional approval u/s 80G5 is restored. 14.In the result, both the appeals of the assessee trust stand treated as allowed for statistical purposes. Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 26/05/2026.

Sd/- Sd/- (Ratnesh Nandan Sahay) (Sanjay Garg) Accountant Member Judicial Member Dated 26.05.2026 Ganesh Kumar, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT By Order, Asst. Registrar ITAT, Jaipur