Loading judgment…
Facts
The assessee, Jain Sanghatana Foundation, appealed against the order of the CIT(Exemption) rejecting its application for registration under Section 80G. The CIT rejected the application based on the observation that one of the trust deed's object clauses was religious in nature and that the assessee failed to clarify if the affiliated body, Bharatiya Jain Sanghatana (BJS), was charitable, religious, or composite.
Held
The Tribunal noted that the assessee had applied for registration under Section 80G(5)(iii) and had submitted documentary evidence, including a trust deed and activities related to water conservation. The Tribunal also observed that the affiliated body, Bharatiya Jain Sanghatana, had already obtained 80G registration. The Tribunal found the rejection by the CIT to be baseless and a result of a mere punching error in the application.
Key Issues
Whether the rejection of the 80G registration application by the CIT(Exemption) was justified, considering the nature of the assessee's activities and the affiliation with an already approved organization.
Sections Cited
80G, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH,
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
sआदेश / O R D E R PER DINESH MOHAN SINHA, JM:
Captioned appeal filed by assessee pertaining to Assessment Year 2025-26, is directed against order passed by Commissioner of Income Tax (Exemption), vide order dated 30/12/2024, u/s. 80G of the Income Tax Act, 1961. 2. Grounds of appeal raised by the assessee are as follows:
1. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts in not considering the fact that the Bharatiya Jain Sanghatana is a publicly non-profit social impact organization addressing national concerns in disaster response, water conservation, health AMD social development AMD the said activities are also appreciated by the Honorable Prime Minister. No religious activities are undertaken either by the said organization OR the affiliated body
2. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the rejection order without verifying the fact that the affiliated body has also obtained the approval for the registration of 80G(5)(i) of the Act AMD the same is also publicly available on their official website https://bjsindia.org/. Thus, when the affiliated body itself has obtained the clear approval for 80G, then there is no basis for the rejection of approval of 80G for the organization which is following the principles of Bharatiya Jain Sanghatana.
3. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the rejection order, wherein the authority have also rejected the provisional approval for registration of 80G of the Act. The provisional registration was given upto A.Y. 2025-26 AMD the said cannot be rejected/revoked by the authority until the decision is made by the Honorable Income tax Appellate Tribunal in the appellant case as there was no separate show cause was given to the assessee. 4. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the order. The reasons advanced for rejection of recognition u/s. 80G was that the genuineness of the activities of fund AMD the fulfillment of all the conditions laid down in clauses (i) to (v) of section 80G (5) of the act these reasons are curable based on the facts already on record AMD therefore, the assessee be given the recognition u/s. 80G of the Act 5. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the rejection order, which seems to be of pre-determined mindset without verifying the facts AMD documents available on record. Therefore, it is hereby requested to restore the provisional approval 6. Based on the facts & circumstances of the case, Commissioner Income Tax (Exemption) has erred in law as well as on facts in not granting the benefit available to the appellant U/s. 6/80G(5)(iii) of the Act without properly looking into the correct facts of the case AMD even when all the conditions for granting the exemptions U/s. 80G(5)(iii) of the Act have been duly satisfied by the Trust. 7. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the rejection order for registration u/s 80G, by merely relying on the fact that the organization is indulged in 7 religious activities. The assessee had clearly stated during the responses made that the mention of religious activities was the punching error while filing the Form 10A. Yet, the same was not considered by him AMD adverse order is passed thereby rejecting the application. 8. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the rejection order by not cross verifying the trust deed of the organization submitted along with the 8 responses, which clearly stated that the objective of the organization is nowhere related to the religious but rather charitable work. But, the said fact was not verified/cross examined by him AMD rejection order was passed by the competent authority.
9. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts while passing the rejection order wherein the authority have failed to consider the fact that the registration approval u/s 9 12AB has already been granted to the assessee. On verification of the application u/s 12AB, it can be cross verified that nowhere religious objective was selected AMD therefore, this is clear that while 80G registration application, the selection was merely a punching error 10. Based on the facts & circumstances of the case, the CIT(Exemption), Ahmedabad has erred in law as well as on facts in not considering the fact that the assessee organization is affiliation body with the Bharatiya Jain Sanghatana. The CIT(Exemption) have not considered the fact that all the activities/programs initiated at the BJS HO will be taken to village, districts AMD taluka by Jain Sanghatana Foundations 3. At the outset, that the appeal filed late by 90 days. The Ld. AR of the assessee has filed an application for condonation of delay, supported by Affidavit. The crux of the application for delay is as under; “1. We, Jain Sanghatana Foundation, are registered in affiliation body with the Bharatiya Jain Sanghatana and therefore all the programs initiated at the BJS HO will be taken to village, districts and taluka by Jain Sanghatana Foundations.
An Order for rejection of registration u/s 80G of the Income Tax Act was passed by the CIT(Exemption), Ahmedabad dated 30/12/2024. However, we would like to bring your kind attention to the fact that the communication for the passing of such a rejection order was never served upon us, nor did we receive any communication i.e. via E-mail or SMS.
The passing of the rejection order came to our knowledge when we logged into our E-Filing Portal to check the status of the proceedings dated 24.05.2025. At that time, it came to our knowledge that the rejection order had been passed back dated 30.12.2024, but no communication was received to us.
As the communication of the rejection order passed was not received to us, there was a delay in filing the appeal before the Honorable Tax Appellate Tribunal and the same could not be filed till date due to unavoidable circumstances.”
During the course of hearing, the Ld. AR submitted that the assessee was not have knowledge about online order passed by Ld. CIT(A). That the assessee was unaware about notice and proceedings going on before the Ld. CIT(A). The Department started recovery of outstanding Tax demand for AY 2014-15, then only the assessee came to know about the order passed by the Ld. CIT(A). That the Ld. AR prayed for one more opportunity may kindly be given to the assessee to explain the case.
On the contrary, the Ld. Sr. DR for the revenue has not objected to the prayer of the Ld. AR.
We have heard both the parties. We note that delay of filing before this Tribunal was due to unaware about online proceedings in the case going on before the Ld. CIT(A). The appellant came to know about the order of Ld. CIT(A) when a call received from department for recovery of tax for AY-2014-15. In the absence of any contrary material of fact available on record, there is a sufficient cause for delay in filing the present appeal. Section.253(5) of the Act, empowers the ITAT to admit an appeal after showing sufficient cause by the assessee. After considering the reason explained by the Ld. AR. In the interest of justice, we take a judicious view and condoned the delay in filing appeal by 421 days.
Brief facts of the case that the Appellant is an AOP which has been engaged in the Charitable Activities registered under the Bombay Public Charitable Trust Act, 1950 having Registration No. F/1354/Jamnagar. The Trust is also registered under section 12A(1)(ac) (iii) of the act, the copy of the also certificate, placed on record. The Trust has applied for Provisional Registration under section 80G(5)(iv) of the Act vide Form 10A dated 29.03.2023. The copy of Form 10A along with the copy of the Provisional Registration granted in the Form 10AC is placed on record. The Trust has applied for Registration under Section 80G(5)(iii) of the Act vide Form 10AB dated 08.06.2024. Further, the hearing notice in the form of Questionnaire was issued for proceedings u/s 80G(5)(iii) of the act. The Trust has filed response dated 18.10.2024 along with all the supporting documentary evidence such as such as list of Donations received or paid exceeding Rs. 10,000, Details of Income and Expenditure for last three years etc along with their ledger copies, etc., The copy of the said Questionnaire issued along with response filed is placed on record.
A show cause notice was issued dated 20.12.2024 wherein the it was mentioned that one of the object clause of the trust is religious in nature in the trust deed and against the said show cause notice response have been submitted by the appellant trust dated 24.12.2024 stating all the facts along with relevant documentary evidence which have not been considered by the CIT (Exemption) and issued order rejecting application for registration under section 80G(5)(iii) filed vide Form 10AB dated 30.12.2024.
While rejected the appeal, the Ld.CIT(E) observed that “8. The reply of the applicant dated 23.12.2024 is considered; however, the same is not found acceptable. To begin with, on perusal of the objects of the applicant as stipulated in the instrument of creation of the Trust, it is observed that following objective of the instrument is associated with another trust/body. The object is reproduced as under for the purpose of ready reference: Since this society is affiliated body of 'Bharatiya Jain Sanghatana' hence, all the programs that will be initiated at the BJS HO will be taken to village, districts, and taluka by the society. Hence, on plain reading of the above objects, it is evident that the applicant is affiliated body of "Bharatiya Jain Sanghatana (BJS)" and will act as mediator to transmit the object of BJS HO to the village, districts and taluka. However, when the applicant was given an opportunity to explain whether the BJS is a Charitable, Religious or a composite trust. The applicant has refrain from submitting any details in this regards. Hence, the question what is the nature of BJS i.e. Charitable/ Religious/ Composite trust; whether the applicant is approved u/s. 80G of the Act; whether the applicant is indulge in undertaking religious activity irrespective of any religion remains un-answered. Therefore, the nature of the applicant is not ascertainable in the present case, which was the sole responsibility of the applicant to prove the genuineness of the trust. 4.3 Section 80G makes, it very clear that before granting approval under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and the fulfillment of all the conditions laid down in clauses (1) to (v) of section 80G(5) of the act.”
During the course of argument, the Ld. AR of the assessee submitted that the assessee prayed for one more opportunity given to the assessee to explain the case before the Lower Authorities.
On the contrary, the Ld. DR for the revenue relied on the finding of the Ld.CIT(E).
We have heard both the parties and perused the material available on record. We note that the Appellant Trust submission on merit details are under-mentioned;
Sr. Contention raised Response of the Appellant against the No by CIT contentions raised (Exemption)
Vide Show Notice The appellant trust has applied for Registration Cause dated under Section 80G(5)(iii) of the Act vide Form 20.12.2024 and the 10AB dated 08.06.2024 bearing ARN: order passed raised 407532510080624 wherein the trust has the contention that submitted the old Trust Deed at the time of filing one of the Object of the Form 10AB. clauses as Further, Questionnaire was issued wherein the mentioned in the trust have submitted all the details along with Trust Deed is the necessary documents have been submitted Religious in nature dated 18.10.2024 bearing ARN: and not as per 615690721181024. Provisions of section 80G(5)(iii) Moreover, the show cause notice was issued of the act dated 20.12.2024 (copy of the same enclosed herewith from Page No. 33 to 34) stating that one of the objects of the trust is religious in nature and against the said show cause notice the trust have filed response dated 24.12.2024 mentioning that there was a mere punching error while filing the application. Firstly, attention is required to the following important facts of the organization:
1. 1. This organization works on the activities and instructions of the affiliated body Bharatiya Jain Sanghathana. All the programs that will be initiated at the BJS HO will be taken to village, districts and taluka by Jain Sanghathana Foundations. The said fact is also mentioned in the Trust Deed of Jain Sanghathana Foundation - Jamnagar, which is enclosed from page 41 to 67.
2. Bharatiya Jain Sanghathana is a publicly non- profit social impact organization addressing national concerns in disaster response, water conservation. The work done by this organization is appreciated by the Honorable Prime Minister and their good deeds are also available on their official website https://bjsindia.org/.
3. Further, the affiliated body with whom the organization is engaged i.e. Bharatiya Jain Sanghathana has also obtained the registration u/s 80G vide Form 10AC is also enclosed from page 38 to 40, when the affiliated body itself has obtained clear approval for registration u/s 80G of the Act, then there is no basis for the rejection of approval of 80G for the organization which is following the principles of Bharatiya Jain Sanghatana.
We further note that the Trust have been engaged in charitable activities regarding organizations engaged in water conservation awareness and water management play a vital role in promoting sustainable use of water resources. Their work involves conducting awareness campaigns, massive initiatives involving many people, educational workshops to inform the public about the importance of conserving water and adopting eco-friendly practices. These organizations encourage behavioral changes such as using water-saving appliances, distributing pamphlets for methods to save water, and practicing rainwater harvesting. In addition to awareness-building, they also engage in practical water management activities like groundwater recharge, the construction of check dams and renovation of lakes, and the rehabilitation of traditional water bodies such as wells and ponds.
We further note that during the period starting from 01-01-2023 to 31- 10-2024, the organization has carried out charitable activities as follows: i. An MOU was signed with the District Collector - Jamnagar for public awareness regarding water. ii. For public awareness on water, the initiative "Pyaar-Rath" was flagged off by the District Collector. This campaign toured in 206 villages in Jamnagar district for awareness and conservation Visited to seek blessings from Jain monks and nuns for the Water-Revolution Campaign. iii. Organized District and State-Level Poster Competitions 2023 for water awareness. iv. On World Water Day - 22-3-2024: "Save Water, Save Future", a mass campaign covered 20,000 homes and offices in Jamnagar city with posters. v. Renovation of lakes: Khijadia, Jambuda, Aari-Khamba, Abhayadham and Chhapra-Bheraja lakes were restored with guidance from BJS Pune and support from various trusts and local groups. vi. In Jamnagar district's schools, colleges, and communities, a "Save Water through Easy Methods" campaign was showcased through 258 posters. vii. Conducted National-Level Poster Competition 2024 for water awareness. viii. Session on "Water is Life" in various organizations, colleges and organizations. ix. Various media channels are continuously promoting water awareness via posters and articles. x. Poster and artwork exhibitions related to water awareness are being displayed in digital format on social media.
All the above activities carried out by the organization are duly supported along with documentary evidence, i.e. photographs and newspaper cuttings which are placed on record.
We have heard and perused all the relevant material available on record. After considering the request of the AR, therefore, from the above- mentioned detailed facts and the supporting documentary evidence, it is proved that the organization is merely engaged in charitable organizations. There are no religious activities carried out by them and therefore, the basis on which the registration u/s 80G is rejected, is totally baseless and merely a punching error while filing the Form 10AB. Based on the above documents and evidences, we hereby denied the Ld.CIT(E) to re-consider the facts, and the conditions for the 80G registration. We are of the view that one more opportunity should be given to the assessee to present his case before the Ld.CIT(E) and set aside the order of the Ld.CIT(E), therefore matter is restored back to the file of the Ld.CIT(E) to adjudicate the matter according to law, after due opportunity of being heard to the Ld.CIT(E).
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 03-10-2025.