BHARTIYA SADBHAWNA MANCH,JHANSI vs. COMMISSIONER OF INCOME-TAX, EXEMPTION CIRCLE, LUCKNOW
Facts
The assessee society filed applications for registration under section 12AB and approval under section 80G(5) of the Income Tax Act, 1961. The CIT(E) rejected these applications for lack of sufficient documentary evidence regarding charitable activities. The appeals were filed with a delay, which was condoned due to the marriage and sickness of the society's Principal Officer.
Held
The Tribunal noted that the assessee did not fully comply with the second notice issued by the CIT(E) requiring documentary evidence for its charitable activities. In the interest of justice, the matter was restored to the CIT(E) for a fresh decision after considering the assessee's submissions and evidence.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration and approval due to non-compliance with notices, and whether the matter should be remanded for fresh consideration.
Sections Cited
12AB, 80G(5), 12A(1)(ac)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI M. BALAGANESH & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA Nos. 266 & 267/Agr/2025 Assessment Year: 2023-24
Bhartiya Sadbhawna Manch, Vs. Commissioner of 127, Kailash Residency, Galla Income-tax (Exemption), Mandi Road, Jhansi (UP). Lucknow. PAN : AAIAB4127E (Appellant) (Respondent)
Assessee by Sh. Arpit Gaur, C.A. Department by Sh. Sukesh Kumar Jain, CIT/DR
Date of hearing 19.11.2025 Date of pronouncement 27.11.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
These two appeals have been preferred by the Assessee against two separate orders dated 29.11.2024 and 30.12.2024 passed by the Ld. Commissioner of Income Tax (Exemptions), Lucknow [hereinafter referred to as "CIT(E)"], whereby the applications filed by the appellant in Form 10AB each seeking registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as "the Act") and registration/approval under second proviso to clause (iii)(b)(B) of section 80G(5) of the Act were rejected.
ITA No.266 & 267/Agr/2025
At the very outset, it has been brought to the notice of the Bench
that both these appeals were filed on 08.05.2025 against the impugned
orders dated 29.11.2024 and 30.12.2024 by a delay of about 94 days
and 66 days respectively. Assessee has submitted through the delay
condonation applications that due to marriage of assessee society’s
Principal Officer Mr. Anuj Khard on 02.02.2025 and his sickness
thereafter, the said delay was caused in filing both these appeals. Mr.
Anuj Khard has filed an affidavit in support therefore. In view of
assessee’s uncontroverted submissions, supported by an affidavit, the
reasons shown for the delay in filing these appeals are treated to be
sufficient. The delay stands condoned.
Since, the facts and issue involved in both these appeals are
similar, both these appeals were heard together and are being disposed
of by this consolidated order for the sake of convenience and brevity. The
facts of ITA No. 266/Agr/2025 are only being narrated as under.
ITA No. 266/Agr/2025:
Brief facts state that assessee filed an application for registration of
assessee trust u/s. 12AB of the Act on 29.05.2024 in Form 10AB under
rule 17A of the Income Tax Rules, 1962. Learned CIT(E) issued notice to
the assessee on 04.10.2024 for assessee’s response to be submitted on 2 | P a g e
ITA No.266 & 267/Agr/2025
14.10.2024, requiring the assessee to file documentary evidence to
substantiate the charitable activities carried out by the assessee trust in
the recent past. In response to the aforesaid notice, assessee made
submissions before the ld. CIT(E), narrating the objects of the trust in
detail. However, Ld. CIT(E) observed that the details/expenditure
incurred on charitable activities as per objects of the trust deed were not
found in the assessee’s response. Ld. CIT(E) issued another notice
dated 18.11.2024, requiring the assessee to furnish documentary
evidence, viz., bills, vouchers, photos, affiliation, license, fire NOC,
newspaper coverage by the media etc. to substantiate the charitable
activities claimed to have been carried out by the assessee trust/society
in last three years, for which the expenditure has been booked in the
income & expenditure account of the assessee. Assessee did not
respond this notice issued by Ld. CIT(E). Ld. CIT(E), thus, passed the
impugned order for want of aforesaid documentary evidence.
Assessee has preferred this appeal against the impugned order on
the following grounds :
“1a). That, on the facts and in the circumstances of the case, the impugned Order dated 29-11-2024 passed by the learned Commissioner of Income-Tax, Exemption, Lucknow [for the sake of brevity, referred to as 'CIT(E)'] under section 12AB(1)(b)(ii)(B) of the Income-Tax Act, 1961, rejecting the application of the Appellant, filed in the prescribed Form 10AB, for grant of permanent registration to it under section 12A(1)(ac) of the 3 | P a g e
ITA No.266 & 267/Agr/2025
Income-Tax Act, 1961, is erroneous, unjustified, unwarranted and bad-in-law. 1b). That, on the facts and in the circumstances of the case, the learned CIT(E), Bhopal also grossly erred, both on facts and in law, in initiating the proceedings for cancellation of provisional registration/ approval to the Appellant under section 12A(1)(ac)(vi) of the Act, granted on an earlier occasion. 2. That, on the facts and in the circumstances of the case, the learned CIT(E) grossly erred in rejecting the application of the Appellant for grant of permanent registration and as also, in initiating the proceedings for cancelling the provisional registration granted to it earlier without considering and appreciating the material fact that the Appellant, having been duly constituted as a Registered Charitable Institution, for pursuing the charitable objects of relief of poor, education, medical relief, yoga and advancement of any other object of general public utility, was fully eligible for grant of permanent registration under section 12A read with section 12AB of the Income-Tax Act, 1961, after having made a valid application for grant of registration by making full compliance of all the conditions as enjoined under section 12AB of the Act. …………………………….” 6. Perused records. Heard Ld. representative for the appellant
assessee and Ld. CIT(DR) for the revenue.
Learned representative for the assessee has submitted a paper
book, containing 119 pages, containing assessee’s registration
certificate, bye laws, ITR computation, audit report etc. and specifically
drawn the attention of the Bench towards the copies of photographs,
news material and other documents in respect of the charitable activities
carried out by the appellant society during the year under consideration,
which are depicted from page 65 to page 75 of assessee’s paper nook,
further submitting that the assessee society also incurred expenditure 4 | P a g e
ITA No.266 & 267/Agr/2025
towards the charitable activities of the assessee society. Prayed to allow
assessee’s appeal.
Learned CIT/DR has supported the impugned order.
After perusing the impugned order, we notice that the assessee
does not seem to have complied with the second notice dated
18.11.2024 issued by ld. CIT(E), wherein assessee was required to
furnish documentary evidence to substantiate that the charitable activities
claimed to have been carried out by the assessee trust were
commensurate to the expenditure booked in assessee’s income and
expenditure account for relevant years. In such circumstances and in the
interest of justice, we deem it just and appropriate to restore the matter
back to the file of ld. CIT(E) for passing the order a fresh after
considering assessee’s submissions and documentary evidence.
Assessee is directed to file its submissions and required documentary
evidence before Ld. CIT(E) to substantiate the commencement of
charitable activities with respect to the objects of the trust and expenses
incurred there upon. We order accordingly. The appeal is liable to be
allowed for statistical purposes.
5 | P a g e
ITA No.266 & 267/Agr/2025
ITA No. 267/Agr/2025:
In this appeal also, learned CIT(E) has declined the
registration/approval of assessee’s trust u/s. 80G(5) of the Act for A.Y.
2023-24 on the similar grounds. Our findings arrived at in ITA No. 266/Agr/2025 shall mutatis mutandis apply in this appeal also. This
appeal No. 267/Agr/2025 is thus liable to be allowed for statistical
purposes.
In the result, ITA No. 266/Agr/2025 and 267/Agr/2025 are allowed
for statistical purposes. The impugned orders dated 29.11.2024 and
30.12.2024 are set aside.
Order pronounced in the open court on 27.11.2025.
Sd/- Sd/- (M. BALAGANESH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27.11.2025 *aks/-
