SHI vs. IDDHI EDUCATION SOCIETY,SATARAVS.CIT EXEMPTION PUNE, PUNE

We had submitted Form 10AC (provisional registration) properly and on time.

A small typing mistake in our first reply was misunderstood.

All required documents and replies were submitted honestly.

The officer passed the order without properly considering our replies and without giving a fair opportunity.

Our trust is genuinely involved in educational and charitable activities.

There was no misrepresentation or concealment of facts.

The rejection is unfair, harsh, and not in the spirit of the law.

We request that our case be heard fairly and our registration be granted as per law.

We have heard both the parties and perused the records. In this case, ld.Commissioner of Income Tax(Exemption)[ld.CIT(E)] has denied assessee‟s claim for registration under section 12A of the Act, r.w.s 12AB of the Act. In this case, Assessee has filed an ITA Nos.1774 & 1786/PUN/2025 [A]

In view of the above, the application filed by the assessee is hereby rejected and the regular registration granted on 02/10/2021 under section 12AB read with section 12A(1)(ac) (i) of the Income Tax Act, 1961 is hereby cancelled.”

1 Thus, the ld.CIT(E) rejected assessee‟s claim only on one ground that Assessee was not registered u/s.12A prior to 01.04.2021 and alleged that there was misrepresentation of facts.

We have studied the paper book filed by the Assessee. During the proceedings, ld.AR pleaded that Assessee had filed all the necessary documents before ld.CIT(E). Ld.AR filed copy of e- Acknowledgment to demonstrate the documents filed before ld.CIT(E).

1 Thus, it is eminently clear from the e-Acknowledgment filed by the Assessee that Assessee had filed all necessary documents before ld.CIT(E).

It is sad to note that ld.CIT(E) has blatantly made a false statement in the order u/s.12A r.w.s 12AB dated 20.09.2024. 7. We have noted that Assessee was duly registered under section 12AA vide the Certificate No.PN/CIT(Exemp.)/Tech/12AA/Pune Rg/767/181/2017-18/1128 dated 28.05.2018. 8. Copy of the said certificate has been filed by the Assessee in the paper book and it is also noted that copy of the said certificate was filed before the ld.CIT(E).

Ld.CIT(E) has not bothered to read any of the documents filed by the Assessee and erroneously rejected application stating incorrect facts.

After studying the documents filed by the Assessee before the ld.CIT(E), it is noted that Assessee is running a school which is duly approved by Competent Authorities of the Maharashtra State Government. Running a duly approved school is a Charitable Activity as defined in Section 2(15) of the Income Tax Act.

1 Ld.CIT(E) has not contradicted these facts. No violation of any other law applicable has been brought on record.

2 Section 12AB of the Income Tax Act, 1961 is reproduced here under : Procedure for fresh registration.65 12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,— (a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) 66[or item (B) of sub-clause (vi)] of the said clause,— (i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about— (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),— (A) pass an order in writing registering the trust or institution for a period of five years; or ITA Nos.1774 & 1786/PUN/2025 [A]

3 Thus, as per the Section 12AB of the Act, the ld.Commissioner of Income Tax(Exemption) has to satisfy about Genuineness of the Activities, Charitableness of the Objects and Non violation of any other law applicable.

4 Thus, we have to consider Objects and Activities as mentioned in the Section 12AB of the Act.

After considering the totality of facts of the case, documents filed before the ld.Commissioner of Income Tax(Exemption), we are convinced that Assessee‟s objects are Charitable in nature as defined in section 2(15) of the Act, the activity of running an approved school is as per the objects, Genuineness of activity is established by the documents, the ld.Commissioner of Income Tax(Exemption) has not brought on record any violation of any applicable law, hence for all the reasons and facts discussed in earlier paragraphs, we are of the opinion that the Assessee is eligible for Registration u/s.12A r.w.s. 12AB of the Act. Accordingly, we direct the ld.Commissioner

We derive support from the Order of the Co-ordinate Bench of ITAT Bengaluru in the case of Marine Drishti and Costal Foundation Vs. ITO(Exemptions) [2025] 177 taxmann.com 433, wherein the ITAT after verifying facts directed the ld.CIT(E) to grant Registration u/s.12A r.w.s 12AB of the Act.

1 ITAT Bangalore in the case of Marine Drishti and Costal Foundation Vs. ITO(Exemptions) [2025] 177 taxmann.com 433 vide order dated 31.07.2025 has held as under : Quote“11.4 In the present case, there is not even a whisper about any non-genuineness of the activities carried on by the assessee trust. The only allegation by the ld. CIT(E) is that the assessee had not commenced its activities towards the object of the Trust which in our opinion is not true by taking into consideration the Activity report, photographs & financials along with provisional produced before us. We are also of the considered opinion that it is not the quantum of expenditure which is relevant for the purpose of granting registration but in fact the genuineness of the activity of the trust in accordance with the object of the trust is relevant for granting registration. In the present case, it is a fact that the assessee had already commenced its activity towards the attainment of the object as the assessee trust had conducted the training programme which comes under the framework of the Annual Lifesaver Revalidation Programme in the presence of ITA Nos.1774 & 1786/PUN/2025 [A]

In the result, appeal filed by the assessee is allowed.”Unquote.

In the result, Appeal of the Assessee is allowed. 15. This is an appeal against the order under section 80G(5) of the Act, dated 20.09.2024. Ld.CIT(E) has rejected assessee‟s application for registration under section 80G(5) of the Act, only on ground that provision of section 12A(1)(ac)(iii) of the Act has been rejected vide order dated 20.09.2024. 15.1 Since we have already directed the ld.CIT(E) to grant registration under section 12AB r.w.s. 12A of the Act, in ITA No.1774/PUN/2025 above, the Assessee is also eligible for registration u/s.80G(5) of the Act, as ld.Commissioner of Income tax(Exemption) has not brought on record any other reason for not granting registration u/s.80G(5) of the Act. Accordingly, the ld.CIT(E) is directed to grant registration u/s.80G(5) of the Act.

To sum up, both appeals of the assessee are allowed. Condonation of Delay : 17. There was a delay of 237 days in filing appeal. Assessee filed Affidavit of trustee and copy of Medical certificates. We are convinced that there was sufficient cause for delay. Hence, the Delay is condoned. Order pronounced in the open Court on 24 September, 2025. VINAY BHAMORE

गधर्ाफ़धइल / Guard File. आदेशधिपसधर / BY ORDER,