Loading judgment…
Facts
The assessee, Hariom Baba Gaushala Ashram Trust, a public charitable trust registered under Section 12AB, applied for approval under Section 80G(5) of the Income Tax Act. The CIT(Exemption) rejected the application, citing incomplete details and an inability to conclude on the genuineness of activities or fulfillment of conditions under Section 80A(5). The assessee contended that all conditions for 80G(5) were duly satisfied.
Held
The Tribunal observed that the assessee held valid registration under Section 12AB and fulfilled all five conditions prescribed under Section 80G(5). Relying on High Court precedents, the Tribunal ruled that once a trust holds valid registration under Section 12A/12AA/12AB and it has not been cancelled, a further inquiry into the genuineness of its activities or charitable purpose cannot be made at the stage of granting 80G approval. Therefore, the Tribunal directed the CIT(E) to grant the approval.
Key Issues
Whether the CIT(Exemption) can deny approval under Section 80G(5) to a charitable trust, which is already registered under Section 12AB, by questioning the genuineness of its activities or the completeness of details.
Sections Cited
254(1), 80A(5), 80G(5), 12AB, 11, 12
AI-generated summary — verify with the full judgment below
PER PAWAN SINGH, JUDICIAL MEMBER:
This appeal by assessee is directed against the order of CIT(Exemption), Pune in rejecting application under section 80A(5) for approval of fund of trust.
Rival submissions of both the parties have been heard and record perused. The ld. Authorised Representative (ld. AR) of the assessee fairly submits that assessee is a public charitable trust, engaged in the activities and running gaushala and carrying out animal welfare and allied charitable activities. The assessee is having valid registration under section 12AB. The assessee filed application for approval under section 80G(5) on 22.06.2024. The application of assessee was rejected on the ground that completed details were not furnished and he was unable to arrive at satisfactory conclusion regarding genuineness of activities and fulfilment of condition prescribed under section 80A(5)(i) to (v). The ld. AR of the assessee Hariom Baba Gaushala Ashram Trust ITA 135/Nag/2025 A.Y. 2022–23) submits that condition under section 80G(5) are duly satisfied. Firstly, the assessee is having valid registration under section 12AB and its income is eligible for exemption under section 11 & 12, secondly, all income and assets are applied for charitable purposes, thirdly trust is not created for the benefit of any particular religion, community or caste, fourthly proper books of accounts are maintained and fifthly, trust is duly constituted under the law. No such violation is pointed out by ld. CIT(E). Once, the assessee is having registration under section 12AB, the assessee is also eligible for registration under section 80G(5). To support his submission, the ld. AR relied upon the following decision: CIT(Exemption vs Dignity Education Society (2025) 124 CCH 0317 (SC) CIT(Exemption) vs Dignity Education Society (2025) 179 taxmann.com 373 (Chhattisgarh) Dignity Education Society ITAT order dtd. 09.06.2022. CIT vs Adharshila Shikshan Sangh (2025) 177 taxmann.com 182 (Chhattisgarh) Hiralal Bhagwati vs CIT (2000) 246 ITR 0188 (Guj) Anugraha Education Trust vs CIT(E) (2025) 173 taxmann.com 852 (Bang –Trib) Academy of General Education vs CIT(E) (2025) 175 taxmann.com 714 (Bang –Trib) Tiger Research and Coservation Trust dtd 10.02.2025
The assessee has furnished details note on activities. Such activities are carried out regularly in furtherance of object of the trust audited financial statement of last 3 years was furnished.
On the other hand, ld. CIT–DR for the Revenue supported the order of ld. CIT(E).
Hariom Baba Gaushala Ashram Trust ITA 135/Nag/2025 A.Y. 2022–23) 5. We have considered the submissions of both the parties and have gone through the orders of ld. CIT(E) in rejecting the application of assessee under section 80G(5). We find that there is no dispute that assessee is having valid registration under section 12AB. The assessee also fulfilled the condition that the assessee is having valid registration under section 12AB and its income is eligible for exemption under section 11 & 12, secondly, all income and assets are applied for charitable purposes, thirdly trust is not created for the benefit of any particular religion, community or caste, fourthly proper books of accounts are maintained and fifthly, trust is duly constituted under the law.
We further find that ld. CIT(E) while rejecting the application of assessee in para 7 of his order noted that assessee has not complied with the provisions of sub– clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 as well as the provisions of Rule 11AA(2) of Income Tax Rules, 1962 and that in absence of said details, he was unable to draw satisfactory conclusion about the genuineness of activities of the assessee. We find that assessee fulfilled all the five conditions and laid down in clause (i) to (v) of section 80G(5).
We further find that Hon’ble Chhattistgarh High Court in a recent decision of CIT(E) vs Dignity Education Society while following the decision of Gujarat High Court in Hiralal Bhagwati vs CIT 246 ITR 188 held that once registration under section 12A of Income Tax Act is granted, the benefit under section 80G cannot be denied. Further, Hon’ble Chhattisgarh High Court in CIT vs Adharshila Shikshan Sangh 177 taxmann.com 182 also held that where assessee–society registered under section Hariom Baba Gaushala Ashram Trust ITA 135/Nag/2025 A.Y. 2022–23) 12AA, continued to hold such registration and it had not been cancelled, Tribunal was justified in holding that further enquiry into genuineness of activities and charitable purpose could not be made at stage of 80G approval and in directing grant of approval.
Thus, in view of the aforesaid factual and legal discussion, we direct the ld. CIT(E) to allow registration of an approval of fund under section 80G(5) to the assessee trust.
In the result, the appeal of assessee is allowed. Order pronounced in open court on 23/02/2026 at the time of hearing Sd/– Sd/– KHETTRA MOHAN ROY PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Nagpur: Dated: 23/02/2026 Biswajit