KIRTI MAHAL SATSANG BHAWAN TRUST,MATHURA vs. CIT EXEMPTION, LUCKNOW

(C) During the course of hearing, learned Counsel for the assessee submitted that learned CIT (Exemptions) has wrongly rejected assessee’s application u/s 12AB and u/s 80G of the I. T. Act and denied registration to the assessee on the ground that the assessee trust was not engaged in any substantial charitable activity as per its objects. Learned Counsel for the assessee further submitted that the assessee had received limited contribution which was spent for construction of Satsang Bhawan. Regarding the present status, it was submitted by learned Counsel for the assessee that the construction of Satsang Bhawan is complete and charitable activities as per objects of the trust, including Satsang have began. Learned Counsel for the assessee also submitted that the construction of Satsang Bhawan was in accordance with the charitable objective of the assessee. He also submitted that the other charitable work could not be carried out at a large scale because of paucity of fund, as the funds were used mainly for construction of Satsang Bhawan. On the other hand, learned Departmental Representative relied on the order of learned CIT (Exemptions) and left the matter to the discretion of the Bench.

(D) We have heard both sides. We have perused the materials on record. On perusal of records, it is found that the assessee’s application under section 12AB of the I.T. Act and u/s 80G of the I. T. Act, were rejected by learned CIT (Exemptions) on the ground that the assessee & 96/Lkw/2025 Assessment Year:2023-24 3 trust was not engaged in any substantial charitable activity as per its objects and the genuineness of charitable activities being carried out by the trust has not been satisfactorily established. However, we are persuaded by the submissions of learned Counsel for the assessee that the assessee had received limited contribution due to which the funds available with the assessee were spent mainly for construction of Satsang Bhawan and that construction of Satsang Bhawan is in accordance with the charitable objective of the assessee. We are also persuaded by the submission of learned Counsel for the assessee that the other charitable work could not be carried out because of paucity of fund, which was used mainly for construction of Satsang Bhawan. We have taken cognizance of the fact that the presently, construction of Satsang Bhawan has been completed and charitable activities, including Satsang, are being carried out. In view of the foregoing, both the orders of learned CIT (Exemptions) are set aside, and learned CIT (Exemptions) is directed to accept the applications of the assessee u/s 12AB and u/s 80G of the I. T. Act. All the grounds of appeal in both the appeals are treated as disposed of in accordance with the aforesaid.

(D) In the result, both the appeals of the assessee are allowed.

(Order pronounced in the open court on 05/01/2026)