NISCHINT CARE FOUNDATION,NOIDA, UTTAR PRADESH V. CIT EXEMPTION, LUCKNOW

ITA 2694/DEL/2024

AI Insights

The case involves Nischint Care Foundation, which appealed against the orders of the Learned Commissioner of Income Tax (Exemption), Lucknow, rejecting their applications for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act, 1961. The CIT(E) had rejected these applications due to the appellant's failure to provide sufficient documentary evidence to substantiate the genuineness and commencement of its charitable activities. The Tribunal, referencing the Supreme Court's decision in Ananda Social & Educational Trust vs. Commissioner of Income Tax, found that the matter should be reconsidered, emphasizing the need to assess whether the trust's proposed activities align with its charitable objectives.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41849 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: misc
• Other Referred Cases: Ananda Social & Educational Trust vs. Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BALJEET KAUR
• Keywords: Set aside
• Section: 201; 12AA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’ NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA Nos. 2693 & 2694/Del/2024 (Assessment Year : -NA-) Nischint Care Foundation B-101, Gulmohar Garden, Plot No.D-8, Sector – 44, Noida, Gautam Buddha Nagar, UP – 201 301 PAN : AAICN 6786 H Vs. CIT Exemption 5th Floor, TC-46, Vibhuti Khand, Gomti Nagar, Lucknow – 226 010 (Appellant) (Respondent) Assessee by -None- Respondent by Ms. Baljeet Kaur, CIT-D.R. Date of Hearing 12.02.2025 Date of Pronouncement 12.02.2025 O R D E R PER VIMAL KUMAR, JM: 1. Both Assessee’s appeals are against separate orders dated 21.03.2024 of the Learned Commissioner of Income Tax (Exemption)-Lucknow [hereinafter referred to as ‘Ld. CIT(E)’] rejecting applications in Form No. 10AD for grant of Registration under Section 12AB(1)(b)(ii)(B) and clause (ii)(b)(B) of Section 80G(5) of the Income Tax Act, 1961[hereinafter referred to as ‘the Act’]. 2. Brief facts of the case are that the appellant/applicant filed separate applications in Form 10AD seeking registration of trust -2- ITA Nos. 2693 & 2694/Del/2024 Nischint Care Foundation vs. CIT(E) A.Y. –NA- under Section 12AB of the Act on 27.09.2023 and for approval under Section 80G(5) of the Act on 29.09.2023. Notice was issued to applicant on 25.01.2024. Another notice was issued on 13.02.2024. Assessee filed reply dated 20.02.2024. Assessee vide letter dated 25.01.2024 and 13.02.2024 was required to submit note on activities conducted since inspection during last three years and a specific note. Another letter dated 11.03.2024 was issued for providing evidence in support of charitable activities carried out by the trust. No reply was received. Learned CIT(E) rejected the applications for registration of trust under section 12AB of the Act and for approval under section 80G(5) of the Act as applicant failed to file documentary evidence to specify genuineness and commencement of its charitable activities. 3. Being aggrieved, appellant/assessee preferred present appeals with the following grounds: (i) ITA Nos. 2693/Del/2024 : That the learned CIT(E), Lucknow has erred in law and facts by passing order under the provision of section 12AB(1)(b)(ii)(B) of the Act and therefore, your Honors are requested to direct the CIT(E) to grant registration under section 12AB of the Act. (ii) ITA Nos. 2694/Del/2024 : That the learned CIT(E), Lucknow has erred in law and facts by passing an order under fourth proviso to clause (ii)(b)(B) of section 80G(5) of the Act and therefore your Honors are requested to direct the CIT(E) to grant registration under section 80G(5) of the Act. -3- ITA Nos. 2693 & 2694/Del/2024 Nischint Care Foundation vs. CIT(E) A.Y. –NA- 4. At the time of hearing none appeared on behalf of the assessee/appellant. 5. Learned Authorized Representative for the Department of Revenue submitted that despite several opportunities applicant failed to submit evidence regarding charitable activities of trust. 6. From examination of records in light of aforesaid contention, it is crystal clear that learned CIT(E) vide separate orders rejected applications under section 12AB of the Act and under section 80G(5) of the Act for non-filing of evidence regarding charitable activities of the trust. 7. Hon’ble Supreme Court of India in the case of Ananda Social & Educational Trust vs. Commissioner of Income Tax reported in 426 ITR 340 (SC) has held as under :- “12. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term ‘activities’ in the provision includes ‘proposed activities’. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of the Trust.” 8. In view of above material facts and well settled principle of law in the interest of justice, the matter deserves to be restored to the file of Ld. CIT(E). Accordingly, we set aside the orders impugned and -4- ITA Nos. 2693 & 2694/Del/2024 Nischint Care Foundation vs. CIT(E) A.Y. –NA- restore the matters to the files of the Learned CIT(E) for fresh adjudication in accordance with law after affording fair opportunity of hearing to both parties. 9. In the result, both the Appeals filed by the assessee are allowed for statistical purposes. Order was pronounced in the open court on 12.02.2025 Sd/- Sd/- (SHAMIM YAHYA) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 12.02.2025 Pr i ti Y adav, S r. PS * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "