PUNJABI VIRASAT,AGRA vs. ITO (EXEMPTION), AGRA

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA Nos. 97 & 98/Agr/2025 Assessment Year: 2024-25

Punjabi Virasat, Anand Vs. Income-tax Officer Vrindavan, Sanjay Place, Agra. (Exemption), Lucknow. PAN : AAMAP5354R (Appellant) (Respondent)

Assessee by Sh. Anurag Sinha, Advocate Department by Sh. Sukesh Kumar Jain, CIT/DR

Date of hearing 19.08.2025 Date of pronouncement 28.10.2025

ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:

These two appeals have been preferred by the Assessee against two separate orders each dated 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 clause (iii) of first proviso to section 80G(5) of the Act were rejected. The facts of ITA No. 97/Agr/2025 are only being narrated as under.

ITA Nos.97 & 98/Agr/2025

ITA No. 97/Agr/2025:

appellant assessee is a society registered on 17.10.2023 with the Registrar of

Societies, Uttar Pradesh under the Societies Registration Act No. 21 of 1860.

The appellant assessee was granted provisional registration under section

12A(1)(ac)(vi) of the Act on 29.01.2024 provisionally validating the registration

for the duration of A.Y. 2024-25 to 2026-27. Assessee was also granted

provisional registration u/s. 80G(5) of the Act on the same day, i.e., on

29.01.2024. Assessee filed an application u/s. 12AB of the Act in form No.

10AB on 29.06.2024 before ld. CIT(E), for regular registration under section

12A(1)(ac)(iii) and also sought registration/approval under clause (iii) of first

proviso to section 80G(5) of the Act. Ld. CIT(E) issued notices dated

07.10.2024 and 03.12.2024 to assessee seeking it to file documentary

evidence related to charitable/religious activities conducted during last three

years and proposed to be undertaken in the next two years. The appellant

assessee responded to the aforesaid notices, however, Ld. CIT(E) was not

satisfied with the response of assessee as to the charitable nature of

assessee trust activities, hence, rejected assessee’s applications vide

impugned orders each dated 30.12.2024.

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ITA Nos.97 & 98/Agr/2025

CIT(E) has erred in passing the impugned order without properly considering

assessee’s submissions and documentary evidence with respect to entire

expenses contrary to the facts, specifically with respect to publicity, news or

photographs etc., ignoring the fact that the assessee’s trust was commenced

only in the month of October, 2023.

and Ld. CIT(DR) for the revenue.

CIT(E) has arbitrarily exercised his powers in rejecting assessee’s application

for registration of trust u/s. 12AB, despite making observations that the

assessee has maintained all the books of account duly audited by the

Chartered Accountant and has duly incorporated all expenses incurred and

the donations received by the trust, which are appearing in assessee’s income

and expenditure account. Ld. AR has further submitted that the assessee’s

trust was commenced on 17.10.2023 only and there has been no wider

publicity so as to attract media or news coverage/photographs. Assessee’s

expenses are duly debited and donations are properly credited in the books of

account. Prayed to set aside the impugned order and to direct the opponent

authority to grant registration to the trust as prayed hereinabove.

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ITA Nos.97 & 98/Agr/2025

Rs.29,000/- has only been shown as expenses incurred by the assessee. Ld.

CIT(E) could not be satisfied with the genuineness and commencement of

activities due to non-production of the required documents. Ld. DR has

referred Amrut Antimdham Charitable Trust v. CIT(E), 157 taxmann.com 497

(Ahmedabad Tribunal) and Bijapur Jan Shikshan Sansthan vs. CIT(E), 171

taxmann.com 690 (Raipur Tribunal) in support of his arguments and prayed to

dismiss assessee’s appeal.

dismissed assessee’s application on the following grounds -

(i). That there was no submission of any note with respect to the activities of the trust conducted since its inception/during last three years; (ii). That there were neither any charitable/religious activities nor any plan undertaken for such activities in the coming years; (iii). That there were no expenses incurred on charitable activities as per objects of the trust except one case; and (iv). That no bills, vouchers, photos, affiliations, license, fire NOC and news coverage by media etc. were produced to substantiate charitable activities of the trust. 8. The main point for determination under appeal is as to whether Ld.

CIT(E) has erred in law and facts in rejecting assessee’s application for the

registration of trust u/s. 12AB of the Act on the grounds that no substantial 4 | P a g e

ITA Nos.97 & 98/Agr/2025

documentary evidence such as bill, vouchers, photos, affiliation etc. with respect to the charitable/religious activities of the trust could be produced by assessee ?

ITA Nos.97 & 98/Agr/2025

CIT(E), himself, has stated in the impugned order that the donations of

Rs.1,29,700/- were received and the expenditure of Rs.29,000/- to help the

poor and Rs. 236/- as bank charges were incurred during the financial year

2023-24 related to A.Y. 2024-25. Learned CIT(E) has not disputed the fact that

the aforesaid donations and expenses were incorporated in the audited books

of account maintained by the assessee. This fact is further substantiated by

the income and expenditure account of the assessee filed at page 36 of

assessee’s paper book and further by the list of nine donors, donating to a

total of Rs.1,29,700/- filed at page 41 of assessee’s paper book. The

expenditure incurred by the assessee to help the poor and needy stands

affirmed by Mr. Sachin Daluja, whose ailing mother was given medical aid for

Rs.29,000/- by assessee trust, vide cheque No. 918122 dated 05.03.2024,

drawn on Punjab National Bank, Sanjay Place, Agra, vide letter at page 18 of

assessee’s paper book. We further notice that the assessee society was

registered for the charitable activities only on 17.10.2023 and according to

assessee’s submission, its bank account, though opened the same day on

17.10.2023, the first transaction could take place only on 08.02.2024. The

expectations of Ld. CIT(E) from the assessee to have entered into multiple

transactions cannot be said to be based on right reason. The expenses 6 | P a g e

ITA Nos.97 & 98/Agr/2025

incurred in providing medical aid to the needy as stated here in above, are

surety towards fulfillment of one of the objects of the assessee trust. The

expectation of Ld. CIT(E) in respect of future plan and media coverage,

photographs etc. from the trust, which was in its infancy, was not based on

judicious approach. That apart, assessee would be eligible to claim exemption

u/s. 11 of the Act only if its registration is granted. The revenue is not barred

from revisiting the activities of the trust, in future, whether, continuing in

consonance with aims and objectives of the trust for the purpose of

ascertaining the eligibility of exemption u/s. 11 of the Act. We accordingly hold

that Ld. CIT(E) has erred in rejecting assessee’s application for registration of

trust u/s. 12AB of the Act, ignoring the fact that the assessee trust was in its

infancy stage, i.e., it was registered only on 17.10.2023. The impugned order

cannot, therefore, be allowed to stand. The main point is thus decided in

positive in favour of the assessee and against the revenue.

Shikshan Sansthan (supra) are concerned, in those cases, no details in

respect of the genuineness of activities were filed so as to enable Ld. CIT(E)

to satisfy in respect thereof. That apart the co-ordinate Bench of

Ahmnedabad/Raipur Tribunal examined the issue only to the extent as to

whether proper opportunity was provided to the assessee or not. However, in

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the instant case, the required documentary evidence in respect of such details

was filed before Ld. CIT(E) as discussed here in before. The facts of the

instant case are easily distinguishable. Since the main point has been

determined in favour of the assessee, hence, ITA No. 97/Agr/2025 is liable to

be allowed.

ITA No. 98/Agr/2025:

registration/approval of assessee’s trust u/s. 80G(5) of the Act for A.Y. 2024-

25 on the similar grounds. Our findings arrived at in ITA No. 97/Agr/2025 shall mutatis mutandis apply in this appeal also. This appeal No. 98/Agr/2025 is

thus liable to be allowed.

impugned orders each dated 30.12.2024 are set aside. Learned CIT(E) is

directed to grant registration to the assessee trust u/s. 12AB and approval u/s.

80G(5) of the Act.

Order pronounced in the open court on 28.10.2025

Sd/- Sd/- (M. BALAGANESH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 28.10.2025 *aks/-

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ITA Nos.97 & 98/Agr/2025