SAMYAK GYAN PRACHAR PRASAR TRUST,JAIPUR vs. CIT EXEMPTION, JAIPUR

That, due to non-providing of requisite documents and information and also having pressure of handling various Income Tax Returns (ITR) and Tax Audits owing to statutory due dates, Mr. Agarwal also could not remind Mr. Gangwal and the matter say inadvertently or due to non remembrance was slipped out of his attention.

That assessee appellant trust filed the instant appeal against the order passed by the Id. CIT(Exemption) vide order dated 26.06.2023 rejecting the application seeking registration u/s 80G of the Act. The appellant trust is registered before the Rajasthan Public Trust Act 1959.

That Id. CIT(E) rejected the application citing the reason that the assessee has not applied for the registration within the limitation period by invoking clause (iii) of first proviso to sub section (5) of section 80G of the Act which says that application has to be filed within 6 months of expiry of the provisional approval or within six months of commencement of its activities, whichever is earlier.

That during the scrutiny proceeding the assessee trust could not submit the original trust deed which got registered on 08.03.2007 and since then the trust has been doing its activities as per the object of the trust. Relevance and Materiality of Proposed Additional Evidence 6. Trust Deed (Annexure 1): The Trust Deed dated 08.03.2007 is the foundational document of the Appellant trust, evidencing its legal constitution, stated charitable objectives, and existence since inception. It is crucial for establishing the trust's status as a charitable entity from 2007 onwards and demonstrates that the Appellant's charitable activities have been pursued continuously since its creation. This document directly supports the Appellant's claim of a long-standing track record in furtherance of its charitable objectives, thereby underscoring the continuity and bona fides of its activities from the very beginning. 7. Rent Agreement (Annexure 2): The Rent Agreement dated 01.11.2019 pertains to a property rented by the Appellant trust for carrying out its activities. This agreement is highly relevant as it evidences the nature and use of the premises in furtherance of the trust's charitable purposes. It confirms that the Appellant maintains dedicated premises for its operations and that these premises are actively utilized in alignment with the trust's stated objectives. The existence of a formal lease since November 2019 reinforces the fact that the trust has been actively undertaking its charitable programs on the rented premises, in accordance with its objects. 8. Both of the above documents go to the root of the matter in the present appeal. They provide substantive proof of the Appellant's genuine charitable status and ongoing operations over time, which is directly pertinent to the issues under consideration by this Hon'ble Tribunal. Reasons for Earlier Non-Submission 9. The Appellant humbly submits that the aforesaid documents could not be filed before the lower authority during the original proceedings due to an inadvertent oversight and practical difficulties, and not due to any mala fide Intent. The original Trust Deed is an old document (registered in 2007) and obtaining a duly authenticated copy for submission took longer than anticipated. Similarly, the Rent Agreement, though available, was regrettably omitted from the compilation of documents filed earlier due to a logistical oversight in collating numerous records. The Appellant sincerely regrets this omission. It is emphasized that there was no intent whatsoever to withhold or conceal these materials; the lapse was purely unintentional and occurred despite the Appellant's bona fide efforts to comply with all requirements. Relevance to the Appeal and Interest of Justice 10.It is respectfully submitted that admitting these documents now is essential for a fair and complete adjudication of the appeal. In the impugned order, the learned Commissioner (Exemption) observed an apparent lack of justification for the interval between the commencement of the trust's activities and the filing of the application under section 80G(5)(iii) of the Income Tax Act. The Appellant wishes to clarify through the accompanying evidence that its charitable activities indeed date back to its very inception in 2007. The Trust Deed (Annexure 1) demonstrates the establishment of the trust in March 2007 along with its charitable object framework, implying that the trust's work commenced with its creation. Furthermore, the Rent Agreement (Annexure 2) illustrates the continuity and expansion of those activities by showing that by November 2019 the trust had secured dedicated premises to carry out its programs, consistent with its aims.

These documents thus directly address any concerns regarding the timeline of the trust's operations vis-à-vis its regulatory filings. They make it clear that the trust's charitable undertakings have been ongoing and genuine, thereby indirectly responding to the learned Commissioner's finding about an alleged delay or gap between the trust's establishment of activities and its application for approval. The evidence now sought to be adduced will assist in establishing that while there may have been a delay in the formal application under section 80G, such delay did not stem from any absence of activity or lack of charitable intent. On the contrary, the trust has been active all along, and this fact becomes abundantly evident once the Trust Deed and Rent Agreement are taken into account. 12.In view of the above, the Appellant submits that the conditions for invoking Rule 29 of the ITAT Rules are fulfilled in the present case. The documents in question SAMYAK GYAN PRACHAR PRASAR TRUST VS CIT (EXEMPTION) are necessary "to enable the Tribunal to pass orders" on a fully Informed basis and constitute evidence of critical importance in other words, a substantial cause exists for their admission. Additionally, to the extent that the lower authority's decision may have been rendered without the benefit of these materials, the Appellant pleads that it be given sufficient opportunity at this appellate stage to bring them on record. No prejudice will be caused to the Respondent by the admission of this evidence; on the contrary, receiving these documents into the record will assist in arriving at the truth and serve the ends of justice. 13.In light of the foregoing facts and submissions, the Appellant most respectfully prays that this Hon'ble Tribunal be pleased to: a. Grant leave to produce the aforementioned additional evidence namely, Annexure 1 (Trust Deed dated 08.03.2007) and Annexure 2 (Rent Agreement dated 01.11.2019) by taking the same on record for the purposes of the present appeal, and b. Kindly consider these documents at the time of hearing and final disposal of in the interest of justice and for a just adjudication of the matter. The Appellant humbly requests the Hon'ble Bench to exercise its discretion in favor of admitting the above documents, given their fundamental relevance to the issues in dispute. Such indulgence will not only advance the cause of justice but also ensure that the Tribunal has before it all vital facts necessary to render a proper, fair decision in this case.’’ 3.2 During the course of hearing, the ld. DR objected to such additional evidence raised by the ld.AR of the assessee and submitted that the same is not required to be accepted. 3.3 After hearing both the parties and perusing the materials available on record as to the acceptance of the application of the assessee for additional evidence mentioned therein. The Bench feels that with a view to providing equity and justice, the Bench does not find any infirmity in SAMYAK GYAN PRACHAR PRASAR TRUST VS CIT (EXEMPTION) accepting the same. Hence, the additional evidence raised by the assessee through application dated 01-07-2025 is accepted. 4.1 As regards the grounds of appeal of the assessee on merits the bench noted that ld. CIT(E) has passed a detailed order by dismissing the appeal of the assessee on the following points/ grounds. ‘’05. In view of above discussion assessee’s claim of exemption u/s 80G is liable to be rejected and thus being rejected on following grounds:-  Commencement of activities (Para 2.5 – In view of the above the present application filed in Form No. 10AB under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act is liable to be rejected as non-maintainable  Religious Trust are not eligible u/s 80G(5) (Para 3.7 – Therefore, in light of the discussion above, is concluded that applicant contains element of a religious trust and falls out of the scope of Section 80G. Thus, in view of provisions of Section 80G(5), as discussed earlier, applicant is not eligible for registration u/s 80G(5).  Expenditure incurred for religious purposes.(Para 4.3…..The reply of the applicant has not found tenable. The applicant has failed to establish that it has not incurred religious expenditure as a charitable institution. In view of the above discussion, it is clear that assessee is making huge expenditure of religious nature ad violating Section 80G(5)(ii) and sub-section (5B) of Section 80G of the Act. Therefore, the assessee is eligible for approval u/s 80G.

Copy of Trust deed dated 02-07-2018 alongwith the details of 1-12 Members 2. Copy of Registration Certificate dated 22-02-2022 issued by the 13 Devsthan Vibhag under RPT Act, 1959 3. Copy of registration order dated 24-09-2021 u/s 12A of the Act 14-16 4. Copy of application dated 09-01-2022 in Form 10AC for 17-18 registration u/s 80G of the Act 5. Copy of order dated 9-12-2022 in Form 10AB for permanent 19-26 registration u/s 80G of the Act 6. Copy of order dated 9-12-2022 for withdrawal of application dated 27-30 01-06-2022 filed in Form 10AC SAMYAK GYAN PRACHAR PRASAR TRUST VS CIT (EXEMPTION) 7. Copy of revised application dated 5-12-2022 in Form10AB for 31-37 permanent registration u/s 80G of the Act 8. Copy of list of activity carried out by trust in last 3 years 38-39 9. Copy of notice dated 31-03-2023 and 24-05-2023 issued by the ld. 40-46 CIT(E) 10. Copy of reply to the notice dated 24-05-2023 filed on 31-05-2023 47-50 11. Copy of P/L a/c for the F.Y. 2018-19 to 2011-2022 51-54 4.3 On the other hand, the ld. DR supported the order of the ld CIT(E). 4.4 We have heard both the parties and perused the materials available on record. In this case, it is noted that the ld. CIT(E) rejected the approval u/s 80G of the Act to the assessee Samiti on following grounds:- * Commencement of activities. * Religious Trust are not eligible u/s 80G(5) * Expenditure incurred for religious purposes. As regards the commencement of the activities of the assessee trust ld. DR did not controvert to the fact that the assessee is doing charitable activities since 2007. The application for 80G was preferred by the assessee trust based on the change in the system of getting the approval every five year and in that process the provisional registration was granted as is evident from page 17-18 of the paper book. The reliance placed on the information inadvertently made available for the expenditure on religious activities is need to be rechecked based on the fact at column no. 27a and 27b being SAMYAK GYAN PRACHAR PRASAR TRUST VS CIT (EXEMPTION) contradictory. Considering these facts and other additional evidence placed on record we considered the request of the assessee to have one chance to defend their case in accordance with the law before the ld. CIT(E) and therefore, the matter is restored to the file of the ld.CIT(E) for afresh adjudication of the case. In view of the request of the ld.AR of the assessee and in the interest of equity and justice, the Bench feels that the matter needs re-examination/ reconsideration by the ld. CIT(E). Accordingly, the matter is restored to the file of the ld.CIT(E) to consider the above submissions of the assessee and to be decided in accordance with the law. The assessee is also directed to submit the necessary document before the ld. CIT(E) to settle the lis and the matter is restored to the file of the ld. CIT(E) to decide it afresh by providing one more opportunity of hearing. However, the assessee will not seek any adjournment on frivolous ground and remain cooperative during the course of proceedings. Thus the appeal of the assessee is allowed for statistical purposes. 4.5 Before parting, we may make it clear that our decision to restore the matter back to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by ld. CIT(E) independently in accordance with law.