JALARAM SEVA SANSTHAN TRUST,SURAT vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E). Before us, at the outset, the Counsel for the assessee submitted that the assessee / applicant trust had submitted various evidences before Ld. CIT(E) to demonstrate that the assessee / applicant trust had & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 3– commenced it’s activity during the impugned year under consideration. The Counsel for the assesee submitted that in the instant case, the genuineness of the trust or the objects carried out by the assessee as being charitable in nature were not disputed by Ld. CIT(E). The only reason for rejecting the application filed by the assessee / applicant trust for grant of registration under Section12A of the Act was on account of non-commencement of activities by the assessee / applicant traut during the impugned year under consideration. However, the Counsel for the assessee submitted that the assessee had submitted various details like ledger of expenses incurred, newspaper articles, details of gifts distributed objects etc. before Ld. CIT(E) to show that the activities of the assessee / applicant trust had commenced during the impugned year under consideration, but the same were omitted to be taken into consideration by the Ld. CIT(E) while rejecting the grant of approval under Section 12A of the Act. Accordingly, the Counsel for the assessee submitted that in the interest of justice, the matter may be restored to the file of Ld. CIT(E) for de-novo consideration and to consider the case of the assessee / applicant trust on merits on the basis of material available on record.

In response, Ld. DR also did not object to the matter being restored to the file of Ld. CIT(E) for de-novo consideration, on merits, in the interest of justice.

We have heard rival contention and perused the material on record.

On going through the facts of the instant case, we observe that assessee has submitted certain evidences before us to demonstrate that the activities of & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 4– the applicant trust / assessee had commenced during the year under consideration. The Counsel for the assessee also submitted before us that these details were duly furnished before Ld. CIT(E), but there was omission on part of Ld. CIT(E) to take the same into consideration while dismissing the application of the assessee / applicant trust. Accordingly, looking into the assessee’s set of facts, the matter is hereby restored to the file of Ld. CIT(E) for de-novo consideration, in the interest of justice and thereafter pass appropriate orders on the basis of material available on record.

In the result, the appeal of the assessee is allowed for statistical purposes.

In this case the assessee had filed application for grant of approval under Section 80G of the Act, which was rejected by the Ld. CIT(E) on the ground that for grant of approval under Section 80G of the Act, a valid order for registration under Section 12A of the Act is a pre-requisite. Since, the assessee does not hold a valid registration certificate under Section 12A of the Act, approval under Section 80G of the Act could not be granted to the assessee.

However, since in the preceding part of the order, we have restored the issue of grant of approval under Section 12A of the Act to the file of Ld. CIT(E), for de-novo consideration, accordingly, the appeal filed by the assessee / applicant trust against order of rejection of approval under Section & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 5– 80G of the Act, is also hereby restored to the of Ld. CIT(E) for de-novo consideration.

In the combined result, both the appeals filed by the assessee / applicant trust are allowed for statistical purposes. This Order is pronounced in the Open Court on 07/07/2025