JITO MALEGAON CHAPTER FOUNDATION ,NASHIK vs. EXEMPTION CIRCLE, PUNE

आयकरअपीलीयअिधकरण, पुणेपीठ�, पुणे INCOME TAX APPELLATE TRIBUNAL, PUNE BENCH ‘A’, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA 655/PUN/2026 (िनधा�रणवष�/AssessmentYear:NA) JITO MALEGAON CHAPTER EXEMPTION CIRCLE FOUNDATION PMT BUILDING SHANKAR SETH C/O VIJAYKUMAR BHAGCHAND, ROAD SWARGATE Vs. LODHA CS NO 97 LODHA BHAVAN PUNE-411037, MAHARASHTRA , SANGMESHWAR MALEGAON, NASHIK-423203, MAHARASHTRA अपीलाथ�Appellant ��यथ� Respondent Permanent Account Number of Assessee: AAGCJ1288C अपीलाथ��ारा/Appellant represented by: Shri Suhas P. Bora and Ms. Sampada Ingale ��यथ��ारा/Respondentrepresented by: Shri Mithun Shete CIT DR सुनवाईक�तारीख/Date of conclusion of hearing: 06.10.2026 घोषणाक�तारीख/Date of pronouncement: 12.10.2026 आदेश / ORDER PER VINAY BHAMORE, JUDICIAL MEMBER : This appeal is filed by the Assesseeagainst the order of Ld. CIT(E) PUNE dated 10th December, 2025 rejecting application filed by the assessee for grant of regular application u/s.12A(1)(ac)(iii) of the Income Tax, 1961. 2 Facts in brief are that the assessee is a charitable foundation registered u/s. 8 of the Companies Act, 2013. It was established with the primary object of promoting social welfare, charitable activities, skill development, youth empowerment, and public welfare among all sections of society, without any discrimination as to caste, creed or religion.Provisional registration u/s. 12AB was granted to the assessee on 12.09.2023. Pursuant to the same, assessee has applied for regular/final

ITA 655/PUN/2026 JITO MALEGAON CHAPTER FOUNDATION registration in Form No. 10AB on 20.06.2025 under clause (iii) of Section 12A(1)(ac) of the Act, seeking grant of final registration under Section 12AB.In order to verify the genuineness of the activities, ld.CIT(Exemption) issued notice through ITBA portal on 18.08.2025 to which the assessee has filed the requisite details. Thereafter, ld.CIT(Exemption) issued another notice dated 09.10.2025 pointing out certain discrepancies in the information/details so filed. To this notice also, asssesee has furnished its response on 25.11.2025. However, ld.CIT(Exemption) rejected the application by observing as under : “4. The assessee furnished response on 25/11/2025. The assessee was requested to furnish note on activities giving details of activities actually carried out with supporting documents for claimed activities. From the submissions it is seen that the assessee trust has not carried out any charitable activities. The activities carried out are mainly seminars on job fairs and celebration of yoga day and conducting a marathon. However, supporting evidences such as photographs of these activities, related bills and vouchers of charitable activities, details of beneficiaries are not submitted by the assessee trust. As such the authenticity of the said activities remained questionable. The bills invoices furnished are mainly related to administrative and establishment (Miscellaneous expenses). It is also seen from the financial statements that the trust has mad expenses on miscellaneous activities and has not made any expenses on charitable activities. Also, the bills furnished are mainly hand written bills. It is also seen that paper bills furnished are not having GST No. even thought no any stamped on these bills. As such the authenticity and genuineness of the said bills remained questionable. Thus, the assessee trust has failed to prove the authenticity and genuineness of its charitable activities. 7. Considering the above facts discussed in the show notice and discrepancies noticed and also that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 as well as the provisions of Rule 17A(2) of Income Tax Rules, 1962 in spite giving sufficient opportunities, the undersigned is not satisfied about the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects.” 3. Against the said rejection, the assessee has approached this Tribunal assailing the impugned order. 4. We have heard both the sides and perused the record. We have also carefully gone through the decisions relied on by ld Counsel for the assessee We have gone through the finding given by ld.CIT(Exemption). We find ld.CIT(Exemption) without pinpointing any specific

ITA 655/PUN/2026 JITO MALEGAON CHAPTER FOUNDATION violations/defects has recorded a finding that assessee has not carried out any charitable activities. In the case of Ananda Social and Educational Trust Vs CIT, (2020) 426 ITR 340 (SC), the Hon’ble Supreme Court held that at the registration stage the expression “activities” includes proposed activities. The Commissioner has to examine whether the objects are genuinely charitable and whether proposed activities are genuine and consistent with those objects; registration proceedings are not an assessment of what the trust has actually accomplished. We find ld.CIT(Exemption) has travelled beyond his jurisdiction at the time of granting as regards the utilization of expenditure, being premature at this stage. We find ld.CIT(Exemption) has adopted hyper technical approach. 5. Be that as it may, it is the allegation of ld. CIT(Exemption) that supporting evidences such as photographs, related bills & vouchers & details of beneficiaries of activities such as Job fairs, Yoga Day celebration, conducting a marathon were not submitted by the assessee & the bills which were submitted does not contains GST numbers etc. And in the financial statements the trust has made expenses on Miscellaneous activities & has not made any expenses on charitable activities.In this regard we find that the activities of conducting seminars on Job fairs, Yoga Day celebration, conducting a marathon are all covered in GPU i.e General Public utility if it does not involve any activity in the nature of trade & commerce. In this regard proviso to section 2(15) is relevant which is reproduced herewith “ “(15) "charitable purpose" includes relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless (1) such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and

ITA 655/PUN/2026 JITO MALEGAON CHAPTER FOUNDATION (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year;” 6. From a perusal of above provision, it becomes clear that any activity of General Public Utility which is not in the nature of trade or commerce or business will be charitable. Accordingly, wefind merit in the argument of ld. Counsel for the assessee that the mater needs reconsideration before ld.CIT(Exemption) again. 7. Considering the totality of facts of the case & in the interest of justice we deem it appropriate to setaside the order passed by ld.CIT(Exemption) & restore the matter back to his file with a direction to decide the application for registration afresh as per fact &law, after providing reasonable opportunity of hearing to the assess. The assessee is also hereby directed to respond to the notices issued by ld.CIT(Exemption) in this regard & to produce documents evidences & submissions in support of its contentions without taking any adjournment, unless otherwise required. Impugned order is set aside and grounds of appeal raised by the assessee are allowedfor statistical purposes 8. In the result, the appeal of the assessee is allowed for statistical purposes Order pronounced in the open court on 12th October, 2026. Sd/- Sd/- (R.K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; �दनांक Dated : 12th October, 2026 Sujeet/DOC Digitally signed by Sujeet Kumar Sujeet Kumar Sharma Sharma Date: 2026.10.13 10:24:22 +05'30'

ITA 655/PUN/2026 JITO MALEGAON CHAPTER FOUNDATION Copy to: JITO MALEGAON CHAPTER FOUNDATION , C/O VIJAYKUMAR BHAGCHAND, LODHA CS NO 97 LODHA BHAVAN , SANGMESHWAR 1 MALEGAON, NASHIK-423203, MAHARASHTRA EXEMPTION CIRCLE, PMT BUILDING SHANKAR SETH ROAD 2 SWARGATE, PUNE-411037, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, PUNEBENCH 5 GUARD FILE आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकरअपीलीयअिधकरण ,पुणे / ITAT, Pune