SADGURU SHREE DADA RANADE CHARITABLE TRUSE ,MUMBAI V. COMMISSIONER OF INCOME TAX (EXEMPTION), KALYAN

ITA 314/MUM/2025

AI Insights

The case involves the Sadguru Shree Dada Ranade Charitable Trust appealing against the rejection of its application for registration under section 80G(5) of the Income Tax Act, 1961. The Trust, which focuses on providing educational and medical assistance, had its application rejected by the CIT (Exemptions) due to alleged deficiencies in documentation and evidence of activities. The Trust argued that it had submitted all required documents, including a note on activities and evidence of donations to a COVID center, which were overlooked by the CIT (Exemptions). The tribunal decided to set aside the matter for a fresh examination by the CIT (Exemptions), acknowledging the Trust's compliance with documentation requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26576 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: . KISHOR DHULE
• Assessee Lawyers: SHEKHAR PATWARDHAN
• Keywords: Set aside; Capital receipt; Charitable institution; Tangible material
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘G’ BENCH MUMBAI BEFORE: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 314/MUM/2025 (Assessment Year : 2025–26) Sadguru Shree Dada Ranade Charitable Trust Through Mr. Shekhar Sudhakar Patwardhan (Secretary) 102 Asha Pooja CHS, Ramchandra Nagar, Dombivli, 421201. Vs. Income Tax Officer Kalyan 3(2) Commissioner of Income Tax (Exemption), Pune 2nd Floor Rani Mansion, Kalyan Murbad Road, 421301. PAN/GIR No.AAOTS8494A (Appellant) .. (Respondent) Assessee by Shri. Shekhar Patwardhan Revenue by Shri. Dr. Kishor Dhule, Sr. DR Date of Hearing 26/03/2025 Date of Pronouncement 28/03/2025 आदेश / O R D E R PER VIKRAM SINGH YADAV (A.M): This is an appeal filed by the assessee against the rejection of its application seeking registration u/s. 80G(5) of the Act vide order passed by the Ld. CIT(Exemption) dated 20.11.2024 wherein the assessee has taken the following grounds of appeal: ITA no. 314/MUM/2025 Sadguru Shree Dada Ranade Charitable Truse 2 “1. The learned CIT (Exemption) Pune has erred in rejecting the application of the Appellant Trust, despite the fact that all the documents asked for were duly submitted during the course of faceless proceedings before the CIT (Exemption). 2. The appellant craves leave to add, alter, amend, and modify the aforesaid grounds of appeal at or any time before the hearing as may be advised from time to time.” 2. During the course of hearing, the Ld. AR submitted that the Appellant is a Charitable Trust formed with the object of giving educational and medical assistance to the needy. The Trust got registered with the charity commissioner under Maharashtra Public Trust Act on 16th of Dec. 2014. 3. It was submitted that the Trust had applied for the registration under sub clause (B) of (iv) of first proviso to sub section (5) of section 80G of the Income Tax Act 1961 on 27-6-2024. However, its application was rejected by the CIT Exemptions vide order dated 20th November 2024. The reasons for the rejection of the application given by the ld. CIT (Exemptions) are as follows: “i) Note on activity has not been furnished by you, Furnish activity note giving details viz dates and places of each activities carried out by your trust, details of beneficiaries, how they were identified etc. ii) You have not furnish any supporting credible evidences in respect of the activities. Kindly furnish the same. In absence of any such tangible material in respect of proof of activities being carried out it is not possible to arrive at any conclusion about the genuineness of activities and also to ascertain as to whether the activities are in line with the objects of the trust/institution. iii) In respect of earmarked funds appearing in balance sheet, kindly furnish letter of direction received from the donors and evidences of its utilization for each fund enlisted there in. iv) Furnish copies of bills/invoices of expenses done of activities as shown in your financial statement.” ITA no. 314/MUM/2025 Sadguru Shree Dada Ranade Charitable Truse 3 4. Regarding the note on activities of the Trust and the date of commencement of the activities of the Trust, it was submitted that the same were duly filed with the ld. CIT (Exemptions) vide letter dated 26th June 2024. The copy of the said letter has been placed on record and it was submitted that the same has not been considered by the ld. Commissioner (Exemptions). 5. It was submitted that the ld. CIT (Exemptions) in his order has stated that the Trust has not submitted any supporting credible evidences in respect of the Trust activities. In this regard, it was submitted that during covid period, the Trust had carried out its first major activity. It had donated various medical instruments to the covid center run by Kalyan Dombivli Municipal Corporation. In fact the municipal corporation recognized the noble work carried out by the Trust and gave certificate of appreciation to the Appellant Trust. As an evidence of the activities carried out by the Trust, the Trust had submitted the copy of the bill for the medical instruments purchase by the Trust and also the copy of the certificate of appreciation given by the Kalyan Dombivli Municipal Corporation. Thus the copy of the invoice and the copy of the certificate of appreciation given by the Kalyan Dombivli Municipal Corporation were the most credible evidences for the activities carried out by the Trust, Still the same has not been considered by the ld CIT (Exemptions). ITA no. 314/MUM/2025 Sadguru Shree Dada Ranade Charitable Truse 4 6. It was submitted that the ld CIT (Exemptions) has talked about the earmark funds appearing in the Balance Sheet. In this regard, it was submitted that the Trust has not received any donations in any of these years which are capital receipts and shown in the balance sheet as earmark funds. In fact the same can be verified from the Balance Sheets of the Appellant Trust which were duly submitted to the office of the ld CIT Exemptions during the faceless proceedings. The copies of the Balance Sheets for Financial Years 2021-2022 to 2023-2024 were placed on record and it was submitted that the same were considered by him while passing the impugned order. 7. It was submitted that the last deficiency pointed out by the ld. CIT Exemptions was that the Trust has not submitted the copies of the bills/invoices during the faceless proceedings. However, the same was very much provided as explained earlier. 8. It was accordingly submitted that the Appellant Trust had submitted all the necessary evidences to prove the genuineness of the activities of the trust beyond doubts. Therefore, the appellant hereby request you to set aside the matter for fresh consideration to the ld CIT(Exemptions). 9. The Ld. CIT/DR was heard who has relied in the order so passed by the Ld. CIT(Exemption) and at the same time, didn’t specifically object where the matter is set-aside to the ITA no. 314/MUM/2025 Sadguru Shree Dada Ranade Charitable Truse 5 file of the ld CIT(Exemptions) to consider the necessary information and documentation so placed on record. 10. Heard both the parties and purused the material available on record. As submitted by the ld AR, the assessee had provided the necessary information/documentation in response to various queries so raised by the ld CIT(E) while examining the application so filed by the assessee which has apparently not been taken into consideration while passing the impugned order. Therefore, in the fitness of the things, we deem it appropriate to set aside the matter to the file of the ld CIT(E) to examine the same afresh as per law after providing reasonable opportunity to the assessee. 11. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 28.03.2025. Sd/- (RAHUL CHAUDHARY) Sd/- (VIKRAM SINGH YADAV) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 28/03/2025 Anandi Nambi, Steno Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// ITA no. 314/MUM/2025 Sadguru Shree Dada Ranade Charitable Truse 6 BY ORDER, (Asstt. Registrar) ITAT, Mumbai "