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Facts
The assessee trust applied for registration under Section 12AB. The application was initially rejected by the CIT(E). The Tribunal had previously set aside the issue to the CIT(E), who again rejected the application. The CIT(E) rejected the application primarily on the ground that the re-drafted trust deed was not approved by the Charity Commissioner.
Held
The Tribunal held that the activities of the assessee, as per audited financials, matched the objects mentioned in the trust deed. The objects were not restricted to a particular community. The CIT(E) failed to demonstrate that expenditures were not for the general public. Therefore, the rejection of the application was not justifiable.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration under Section 12AB when the trust's activities aligned with its objects and previous directions of the Tribunal were not properly considered?
Sections Cited
12AB, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT “DB” BENCH, SURAT
Before: Dr. BRR Kumar, Hon’ble & Ms. Suchitra Kamble
आदेश/ORDER Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 21-05- 2025 passed by CIT(E) for assessment year 2022-23.
The grounds of appeal are as under:- “(1) The order of the CIT(E) subsequent to the directions of the Tribunal is barred by limitation. (2) On the facts and circumstances of the case and under the law, the learned CIT(E) was not justified in rejecting application u/s.12AB.
I.T.A No.727/Srt/2025 Shri Lalji Maharaj Mandir Trust, A.Y.2022-23
(3) The appellant having complied with the directions of the Tribunal in the first round, the learned CIT(E) should have granted registration u/s. 12A. (4) Although fully complied, the learned CIT(E) was driven by extraneous consideration in rejecting the application u/s. 12AB. (5) Despite Tribunal holding that the revised Trust Deed had objects which were elaboration of primary object and that activities were not other than for the purpose of religious or charitable, the learned CIT(E) rejected the application u/s. 12AB. (6) The above grounds are prejudiced to one another. (7) The appellant craves leave to add, alter or vary any of the grounds of appeal.”
The assessee has made an application u/s. 12AB of the Income Tax Act, 1961 seeking registration vide application dated 22-09-2022. The said application was rejected vide order dated 30-03-2023. Against the said order, the applicant filed an appeal before the Tribunal and vide order 17-07-2023, the Tribunal set aside the issue to the file of the CIT(E). The CIT(E) observed that the assessee was granted provisional approval in Form 10AC under sub-section (vi) of clause (ac) of sub-section (1) of section 12A on 16-02-2022 from assessment year 2022-23. The assessee was called upon to file certain details and the applicant submitted re-drafted trust deed before the CIT(E). The CIT(E) rejected the application on the ground that the assessee submitted only re-drafted trust deed which was not approved by the Charity Commissioner and hence could not verify the activity. The applicant filed the present appeal before the Tribunal on the ground that the same issue was raised in first round vide notice dated 11-03-2023 and was accepted and the issue which was already been reviewed and accepted was again taken into consideration and rejected on the very same ground
I.T.A No.727/Srt/2025 Shri Lalji Maharaj Mandir Trust, A.Y.2022-23
by the CIT(E). The ld. A.R. pointed out that the activities undertaken as per audited financials matches with the objects specified in the trust deed (PTR).
The ld. D.R. relied upon the order of the CIT(E).
We have heard both the parties and perused the material available on record. It is pertinent to note that the applicant was carrying out the activities as per the audited financials which are identical to that of the objects mentioned in the PTR as well as in the redrafted trust deed. From the perusal of the redrafted deed, the object are not restricted to one particular community only but for all communities without any discrimination based on caste, creed, gender or religion. The CIT(E) could not point out from the financials that the expenditure was incurred for specific community only and not to the general public at large. Thus, it will be appropriate to allow the application of the trust for registration u/s. 12AB. Thus, the rejection is not justifiable and the plea of the applicant is allowed.
In the result, the appeal filed by the applicant/appellant is allowed. Order pronounced in open court on 02.04.2026 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 02/04/2026 TRUE COPY आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Surat 3
I.T.A No.727/Srt/2025 Shri Lalji Maharaj Mandir Trust, A.Y.2022-23
Guard file. By order, Assistant Registrar, Income Tax Appellate Tribunal, Surat a.k.
Strengthened preparation & delivery of orders in the ITAT 1) Date of dictation /02/2026 2) Date on which the typed draft is placed before the /02/2026 Dictating Member & Other Member 3) Date on which the approved draft comes to the Sr. /02/2026 P.S./P.S. 4) Date on which the fair order is placed before the /02/2026 Dictating Member for pronouncement 5) Date on which the fair order comes back to the Sr. /02/2026 P.S./P.S. 6) Date on which the file goes to the Bench Clerk /02/2026 7) Date on which the file goes the Head Clerk 8) Date on which the file goes to the Assistant Registrar for signature on the order 9) Date of Dispatch of the order