SAH CHARITABLE TRUST,MUMBAI vs. SALIL MISHRA, CIT(EXEMPTION), , MUMBAI

The appellant is a public charitable trust registered on 11.08.1987 under the Maharashtra Public Trusts Act, 1950. The appellant is engaged in public charitable activities relating to medical relief/support and educational advancement. The appellant-trust has been holding required registration under Section 12A of the Income Tax Act, 1961 (‘Act’ for short) and approval under

The appellant in compliance with Section 80G(5)(ii) of the Act applied for renewal of registration in Form 10AB under Section 12A(1)(ac)(ii) of the Act. Commissioner of Income Tax (Exemption) (‘CIT(E)’ for short) called for certain details including financial summary, donor structure and medical expenditure incurred. According to the appellant, necessary compliance was made on 20.01.2026 and 23.01.2026. It appears that from financial year 2021-22 to 2023-24, the appellant had extended assistance totalling to Rs.9,89,000/- to one Mrs. Divya Mathur who was suffering from Cancer and was taking treatment at Tata Memorial Hospital. The assistance was spread out in three financial years being Rs.5,00,000/- for 2021-22, Rs.2,39,000/- for 2022-23 and Rs.2,50,000/- for 2023-24. It may be noted that Mrs. Divya Mathur was being treated under the ‘private category’, at the said hospital. Unfortunately, she succumbed to the life-threatening disease somewhere in 2024 which aspect has not been disputed.

The learned CIT(E) by the impugned order dated 23.03.2026 has refused to renew the registration broadly on two grounds. The first is that Mrs. Divya Mathur was being treated in ‘private category’, and possibly, therefore, she was not in need of any assistance. Secondly, the total assistance of Rs.9,89,000/- constituted about 25% of the expenditure on the said object which according to the learned CIT(E) “invalidates its public character”. This order dated 23.03.2026 is the subject matter of challenge in ITA No. 5754/Mum/2026.

The appellant filed an application in Form 10AB on 23.09.2025 seeking renewal of approval under Section 80G of the Act. The said application has been dismissed by order dated 23.03.2026 solely on the ground of non-grant

We have heard parties. Perused record.

It is submitted by the learned AR that the objects of the trust are charitable in nature and even the activities undertaken for the period under consideration are fully charitable in nature. It is submitted that the renewal of registration has been refused on grounds which are untenable. It is submitted that the category under which a particular patient or beneficiary gets treated in the hospital is not decisive as it also depends on the urgency of the treatment. It is submitted that Mrs. Divya Mathur is not related to any of the trustees or their family members. The reason that out of total assistance given, the assistance to Mrs. Divya Mathur is to the extent of 25% is also not acceptable.

The learned DR has supported the impugned order.

We have carefully considered the circumstances and the submissions made. It can be seen that the order refusing renewal of approval under Section 80G of the Act can be said to be consequential and is purely based on rejection of renewal of registration under Section 12AA of the Act. Thus, we have to principally examine the challenge to the order passed under Section 12AA of the Act. We do find that both the reasons given by the learned CIT(E) for refusing the renewal of registration cannot be sustained. Merely because the patient or beneficiary was treated in a ‘private category’ cannot lead to an inference that there was no “financial indigence or economic hardship” as held by learned CIT(E). It is a matter of common experience that the medical treatment for a life-threatening disease that Mrs. Divya Mathur was suffering of prolonged nature and a person with modest means can get his finances exhausted and can look for some assistance. The reasoning that the assistance

In that view of the matter, both the appeals are allowed. The impugned orders dated 23.03.2026 are hereby set aside. The learned CIT(E) is directed to grant renewal of registration/approval under Section 12AA/80G of the Act to the applicant trust for the specific period in accordance with law. Both the appeals are disposed of in the aforesaid terms.