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

ITA 95/LKW/2025

AI Insights

The case involves Kirti Mahal Satsang Bhawan Trust appealing against the decisions of the CIT (Exemptions), Lucknow, which had rejected their applications for registration under sections 12AB and 80G of the Income Tax Act, 1961. The CIT (Exemptions) had initially rejected these applications on the grounds that the Trust was not engaged in any substantial charitable activities as per its objectives. However, the Tribunal, after considering the submissions and the current status of the Trust's activities, decided in favor of the Trust, highlighting that the construction of Satsang Bhawan and the commencement of charitable activities were in line with the Trust's objectives.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827672 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Appeal Filed On: 10-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.K. AGARWAL
• Assessee Lawyers: UMESH SETH
• Keywords: Set aside
• Section: 10; 2; 80G

Judgement Text

"I.T.A. No.95 & 96/Lkw/2025 Assessment Year:2023-24 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.95 & 96/Lkw/2025 Assessment Year: 2023-24 Kirti Mahal Satsang Bhawan Trust Village-Barsana -281405 PAN:AAETK5195L Vs. CIT (Exemptions), Lucknow (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) These two appeals have been filed by the assessee, against the impugned orders each dated 24/12/2024 passed by learned CIT (Exemptions), Lucknow under second proviso to sub-section 23C of section 10 and under section 80G(5) of the Income Tax Act, 1961 (“the Act” for short). (B) The facts of the case, in brief, are that the assessee submitted an application in Form No. 10AB under Rule 2C of the Income-tax Rules, 1962 on 27/06/2024 seeking registration under section 12AB of the Act. The assessee also moved an application for registration of the trust u/s 80G(5) of the Act on 27/06/2024 in Form No.10AB under Rule 11AA of the Income-tax Rules, 1962. The application for registration under Appellant by Shri Umesh Seth, Advocate Respondent by Shri R. K. Agarwal, CIT (D.R.) Printed from counselvise.com I.T.A. No.95 & 96/Lkw/2025 Assessment Year:2023-24 2 section 12AB of the I.T. Act and for approval u/s 80G(5) of the I.T. Act was rejected by learned CIT (Exemptions) on the ground that the assessee was not carrying out any substantial charitable activity, as per objects of the trust. Being aggrieved, now the assessee is in appeal before the Income Tax Appellate Tribunal. (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 Printed from counselvise.com I.T.A. No.95 & 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) Sd/. Sd/. (KUL BHARAT) (ANADEE NATH MISSHRA) Vice President Accountant Member Dated:05/01/2026 *Singh Printed from counselvise.com I.T.A. No.95 & 96/Lkw/2025 Assessment Year:2023-24 4 Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. D.R. ITAT, Lucknow Printed from counselvise.com "