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Facts
The assessee, Society for Clinical Gastroenterology, sought permanent registration under Section 80G after having provisional approval. The CIT(E) rejected the application because the assessee had not commenced any charitable activities since its existence.
Held
The Tribunal held that the genuineness of activities could not be ascertained in the absence of any commencement of activities. Therefore, the rejection of registration by the CIT(E) was justified.
Key Issues
Whether registration under Section 80G can be granted when the assessee has not commenced its charitable activities.
Sections Cited
80G(5)(iii), 12A
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
Society for Clinical Gastroenterology CIT (Exemption) बनाम/ Block F, PGI, Sector 12, Chandigarh. Vs. UT Chandigarh. 160012. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAXTS-2427-E (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Harish Nayyar (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Shri Rajat Kumar Kureel (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 30-06-2025 घोषणाकीतारीख /Date of Pronouncement : 04-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of registration application as filed by the assessee seeking approval u/s 80G(5)(iii) vide impugned order dated 02-12-2024 of Ld. CIT(Exemptions), Chandigarh [CIT(E)], the assessee is in further appeal before us. Upon perusal of Para-4 of the impugned order, it could be seen that the application has been rejected for the reason that the assessee did not commence any activity since its existence. In the absence of any activity, nature and genuineness of the charitable activities could not be determined and accordingly, the application was rejected. Aggrieved, the assessee is in further appeal before us.
From the car records / facts, it emerges that the assessee was set up on 20-03-2018 and it was registered under Societies Registration Act. The assessee was granted registration u/s 12A w.e.f. AY 2019-20 onwards pursuant to the order of the Tribunal. Subsequently, the assessee was granted provisional approval u/s 80G for the period 06- 04-2022 to AY 2024-25. The assessee sought permanent registration which got rejected vide impugned order for the reason that it did not commence its activities. As per the proviso (iii) to sub-section (5), the assessee is required to apply for registration at least 6 months prior to expiry of period of provisional approval or within 6 months of commencement of its activities, whichever is earlier. The Ld. AR has argued that it has nowhere been stated that registration could not be granted in the absence of commencement of activities by the trust. To support the same, Ld. AR has referred to certain decisions of the Tribunal. However, we find that as per clause (ii) of second proviso, the registering authority may call for such documents or information from the assessee or could make appropriate inquiries so as to satisfy himself about (A) the genuineness of activities of such institution or fund; and (B) the fulfillment of all the conditions laid down in clauses (i) to (v). It is an undisputed fact that the assessee has not commenced its activities and therefore, the genuineness of activities of the assessee- trust could not be ascertained. No such material has been shown to us. In such a case, the registration, in our considered opinion, has rightly been denied by Ld. CIT(E). The decision of Delhi Tribunal in M/s Just Be Foundation Trust (ITA No.3678/Del/2018) has been rendered in the contest of pre-amended law. The decision of Jaipur Tribunal in the case of Hemda Medi Resources Pvt. Ltd. (ITA N.679/JP/2015) is distinguishable on facts and would not apply to the facts of the present case before us. Therefore, we upheld the impugned order.
The appeal stand dismissed. Order pronounced on 04-07-2025.