AMJAD ALI MEMORIAL WELFARE TRUST,GORAKHPUR vs. CIT EXEMPTION, LUCKNOW

IN THE INCOME TAX APPELLATE TRIBUNAL VARANASI BENCH, VARANSI BEFORE SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No.195/VNS/2024 A.Y. 2024-25 Amjad Ali Memorial Welfare vs CIT (Exemption) Trust, H. No. 323/E, Islamabad (Deopokhar), Gorakhnath, Gorakhpur-273015 PAN: AAGTA2062C (Appellant) (Respondent) Assessee by: Sh. Faiyaz Ahmad, Advocate Revenue by: Shri. Koushlendra Tewari, CIT DR Date of hearing: 14.05.2026 Date of pronouncement: 29.06.2026 O R D E R PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the orders of the ld. CIT(E), under section 12AB(i)(ii)(B) of the Income Tax Act, 1961 dated 26.09.2024, wherein the ld. CIT(E) has rejected the application filed in Form No. 10AB for registration under section 12AB of the Income Tax Act and initiated proceedings for cancellation of the provisional registration granted under section 12AB dated 6.04.2022. The grounds of appeal are as under:- “1. BECAUSE on the facts and circumstances of the case and in law, learned CIT(E), has erred in refusing to grant registration um section 12AB of the I.T. Act, 1961. 2. BECAUSE on the facts and circumstances of the case and in law learned CIT(E), has failed to consider the submissions, relevant details, documents and evidences submitted/uploaded in response the notices issued by the learned CIT(E) during the proceeding. 3. BECAUSE on the facts and circumstances of the case and in law, learned CIT(E) has failed to take cognizance of the submissions of appellant, that the trust has been running Educational Institute which is a "charitable purpose" 1

ITA No.195/VNS/2024 A.Y. 2024-25 Amjad Ali Memorial Welfare Trust and which satisfies the conditions specified under section 2(15) of the I.T. Act 1961. 4. BECAUSE on the facts and circumstances of the case and in law, learned CIT(E) has arbitrarily refused to grant registration irrelevant grounds. 5. BECAUSE on the facts and circumstances of the case and in law, appellant prays that the order of the rejection be deleted and appellant be granted registration under section 12AB of the I.T. 1961. 6. That, the appellant reserves the right to add, to amend, alter, de modify or withdraw any or all of the above grounds of appeal be or, at the time of hearing.”

ITA No.195/VNS/2024 A.Y. 2024-25 Amjad Ali Memorial Welfare Trust referred to as the ld. AR) appearing on behalf of the assessee submitted that the assessee had filed a detailed submission before the ld. CIT(E) but the ld. CIT(E) had failed to consider these submissions, relevant details, documents and evidences submitted / uploaded in response to the notices issued by him. He had failed to take cognizance of the submission of the assessee that the trust was running an educational institution which was a charitable purpose in itself and satisfied the conditions specified under section 2(15) of the I.T. Act, 1961. Thus, his failure to grant registration was on irrelevant grounds. The ld. AR invited our attention to the submission filed by him which was placed at page nos. 1, 2 and 3 of the paper book filed before us, so as to demonstrate that it had filed the necessary documents that were required before the ld. CIT(E). Copies of these documents were also enclosed in the paper book. The ld. AR also invited our attention to page 24 of the paper book which contained the acknowledgment for filing of the responses to demonstrate that the details of donations, the audit report, the financial statements and the copy of the school registration certificate were all filed alongwith the written submission on 23.09.2024, which was the last date for the filing of the said submissions, but the ld. CIT(E) had not taken the same into account. Accordingly, it was prayed that the matter may kindly be restored back to the file of the ld. CIT(E) so that the assessee may receive a fair hearing. 4. On the other hand, Sh. Koushlendra Tewari, ld. Sr. DR (hereinafter referred to as the ld. DR) submitted that the amended provisions of section 12AB laid down that the ld. CIT(E) had to satisfy himself regarding the genuineness of the activities of the trust and the compliance of all laws and for the same reason, it was necessary for him to conduct an enquiry before granting registration. Since the assessee had not furnished the documents to the satisfaction of the ld. CIT(E), therefore, the registration had been refused. 3

ITA No.195/VNS/2024 A.Y. 2024-25 Amjad Ali Memorial Welfare Trust However, the ld. CIT(A) had no objection to the matter being restored back to the file of the ld. CIT(E) for providing the assessee a fresh opportunity to provide the documents, not already submitted. 5. We have duly considered the facts and circumstances of the case and the arguments of both parties. While the assessee submits that it has submitted all necessary documents, the ld. CIT(E) holds that certain vital documents which are necessary for determining the genuineness of the assessee’s activities and compliance to all laws have not been submitted. In view of the same, we believe it to be in the interest of justice to restore the matter back to the file of the ld. CIT(E) with a direction to the ld. CIT(E) to clearly state documents that he requires and thereafter for the assessee to file the said documents or submit an explanation as to why the same cannot be filed. The ld. CIT(E) may thereafter take a fresh decision in accordance with law after considering all the evidences filed by the assessee. As the matter stands restored to the file of the ld. CIT(E), the appeal of the assessee is held to be allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced under Rule 34(4) of the ITAT Rules, 1963 on 29.06.2026.

Sd/-Sd/- Sd/-SSd/- [SUDHANSHU SRIVASTAVA] [NIKHIL CHOUDHARY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29/06/2026 Sh Copy forwarded to: 1. Appellant – 2. Respondent – 3. CIT DR, ITAT, 4. CIT, 5. The CIT(A) 4