SANT JAGANADE MAHARAJ SHIKSHAN MANDAL,SINDKHEDE V. ITO EXEMPTION WARD 1(1), NSK, NAHSIK

ITA 1754/PUN/2025

AI Insights

The case involves Sant Jaganade Maharaj Shikshan Mandal, an educational trust operating a school in a tribal area of Maharashtra, which appealed against the decision of the Commissioner of Income Tax (Exemption) who had rejected its application for registration under section 12A(1)(ac) of the Income Tax Act, 1961. The Tribunal examined the documents submitted by the trust, including e-Acknowledgements and Form 10AB, which indicated that a significant portion of the trust's income was derived from government grants. The Tribunal noted that the Commissioner had not considered these documents in his decision-making process. Citing precedents and the provisions of the Income Tax Act, the Tribunal concluded that the trust's activities were charitable and met the requirements for registration under section 12A.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787942 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 22-07-2025
• Other Referred Cases: CIT(Exemption) Vs. Reham Foundation LKO 418 ITR 205, Suryodaya Science Foundation Vs. CIT(Exemption), Shivsiddhi Education Society vs. CIT(Exemption)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT BOBDE
• Assessee Lawyers: PIYUSH BAFNA; AAKASH
• Keywords: Set aside; Opportunity of being heard; Reasonable cause
• Section: 12A

Judgement Text

" आयकर अपीलीय अधिकरण ”बी” न्यायपीठ पुणेमें। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपऩल सं. / ITA No.1754/PUN/2025 निर्धारण वषा / Assessment Year: 2025-26 Sant Jaganade Maharaj Shikshan Mandal, Sr No.190/1, Plot No.38, Dondaicha SO., Sindkhede, Dhule – 425408. Maharashrtra. V s. The Income Tax Officer, Exemption, Ward-1(1), Nashik. PAN: AAABS1484Q Appellant/ Assessee Respondent / Revenue Assessee by Shri Piyush Bafna and Shri Aakash Parakh – AR’s Revenue by Shri Amit Bobde - DR Date of hearing 18/11/2025 Date of pronouncement 24/11/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld.Commissioner of Income Tax(Exemption) dated 05.11.2024 rejecting registration under section 12A(1)(ac) of the Income Tax Act, 1961. The Assessee has raised the following grounds of appeal: Printed from counselvise.com ITA No.1754/PUN/2025 [A] 2 “1. On the facts and in the circumstances of the case, and as per provisions & scheme of the Income Tax Act, 1961 (The Act), Hon'ble CIT(Exemption) Pune has erred in rejecting the application of the appellant trust for final registration u/s 12A of the Act and hence, the impugned order may be quashed and the registration under section 12A of the Act may kindly be restored. 2. On the facts and in the circumstances of the case, and as per provisions & scheme of the Act, the Hon'ble CIT(Exemption), Pune has erred in rejecting the application for registration under section 12A of the Act, and therefore the Appellant be granted opportunity to prove/ substantiate its charitable activities before Ld CIT(E) Accordingly, the order passed by the Ld. CIT(E) be kindly set aside and Appellant be granted just and proper relief in this respect. 3. The Appellant craves leave to add, amend, alter, modify, vary, or withdraw all or any of grounds of appeal, in the interest of justice, if necessary, at the time of hearing of the appeal.” 2. We have heard both the parties and perused the records. Ld.Authorised Representative(ld.AR) of the assessee filed a paper book.Ld.AR submitted that Assessee had filed all the necessary documents before the Ld.Commissioner of Income Tax(Exemption). It is noted that the ld.CIT(Exemption) has rejected the application for Registration u/s.12A only on one ground of non-compliance. However, the Assessee has filed copy of the E-Acknowledgements and copy of the Form 10AB. On perusal of the E Acknowledgements and Form 10AB it is noted that Assessee is Printed from counselvise.com ITA No.1754/PUN/2025 [A] 3 running school in Tribal Area of Maharashtra. Assessee filed copy of the approval issued by Government of Maharashtra dated 18/09/1997, 26/03/1997 to the Assessee for running school. It is also observed that 90% of the income shown by the Assessee in Income and Expenditure Account is in the form of Government Grants. This fact is also mentioned by the Assessee in the Form 10AB. The relevant portion of Form No.10AB is reproduced here under : Sl. No . Financi al Year Grants received from Central or State Government Grants receive d from Compa nies under Corpor ate Social Respon sibility Othe r Spec ific Gran ts Other Income Total 1 2022 Rs.8,51,88,763 0 0 Rs.38,98,021 Rs.8,90,86,784 2 2021 Rs.6,87,37,459 0 0 Rs.25,41,432 Rs.7,12,78,891 3 2020 Rs.5,57,20,080 0 0 Rs.13,24,327 Rs.5,70,44,407 2.1 Thus for F.Y.2022-23 Total Income of the Assessee was Rs.8,90,86,784/- out of that Government Grant was Rs.8,51,88,763/- which is 95 %. Similar is for other years tabulated in the table above. This Table was filed before the Ld.Commissioner of Income Tax(Exemption), but he has not considered it at all. Printed from counselvise.com ITA No.1754/PUN/2025 [A] 4 3. Assessee had filed these details before the ld.CIT(Exemption) as evident from the e-Acknowledgments. On perusal of these acknowledgments, it is noted that Assessee had filed totally 18 documents before ld.CIT(Exemption). However, ld.CIT(Exemption) has not even bothered to read any of the documents. Ld.CIT(Exemption) has not commented on any of the documents filed by the Assessee. Therefore, the statement of the Commissioner of Income Tax (exemption) in the rejection Order that assessee has not filed basic details is erroneous and devoid of any merit. 4. Assessee has also filed copy of Trust Deed which is at 43 to 51 of the paper book. In the E-Acknowledgement, the Trust Deed is mentioned at serial number 3. It means the Assessee had filed Trust deed before the ld.CIT(E). Ld.CIT(E) has not commented on the objects of the assessee trust mentioned in the Trust deed. As per the Trust Deed the objects of the assessee are providing education, distribution of education material to poor students etc. 4.1 Ld.DR for the Revenue has accepted the fact that documents referred in the paper book were filed before ld.CIT(Exemption). Printed from counselvise.com ITA No.1754/PUN/2025 [A] 5 4.2 Thus, on perusal of the documents and for elaborate discussion, Assessee’s objects are charitable in nature as defined in Section 2(15) of the Act. Assessee is running a school which is as per the objects and it is charitable activity. Ld.CIT(Exemption) has not brought on record any violation of any other Act. 5. The section 12AB which describes the procedure for registration is reproduced here as under: 12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,— (a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of the said clause,— (i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about— (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub- clause (i),— (A) pass an order in writing registering the trust or institution for a period of five years; or (B) if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard; Printed from counselvise.com ITA No.1754/PUN/2025 [A] 6 5.1 Thus, the Act has given mandate to the ld.CIT(E) to verify objects of the Trust and genuineness of its activities. And the ld.CIT(E) also has to satisfy that the Trust has followed other laws mentioned in the section. In the case under consideration, the ld.CIT(E) has not said any adverse thing about the objects of the Assessee and activities of the Assessee. 6. The Hon’ble Allahabad High Court in the case of CIT(Exemption) Vs. Reham Foundation LKO 418 ITR 205 vide order dated 26.09.2019 held as under : Quote“26. In view of the unfettered power of the Appellate Tribunal in terms of section 254(1) of the Act, 1961 theTribunal can very well record its satisfaction on the genuineness of the activities and object of the Trust andcan very well direct registration of the Trust without remand of case to the Commissioner in case suchsatisfaction is recorded on the basis of documents and material already available on record at the stage ofexamination by Commissioner.” Unquote. 7. ITAT Pune Bench in the case of Suryodaya Science Foundation Vs. CIT(Exemption) in ITA No.791/PUN/2022 vide order dated 06.02.2023 has allowed the appeal of the Assessee. Similarly, ITAT Pune Bench in the case of Shivsiddhi Education Society vs. CIT(Exemption) in ITA No.1774 & 1786/PUN/2025 vide order dated 24.09.2025 has held that Assessee was eligible for registration Printed from counselvise.com ITA No.1754/PUN/2025 [A] 7 u/s.12A of the Act, and accordingly directed ld.CIT(Exemption) to grant registration. 8. In these facts and circumstances of the case, we are convinced that Assessee is eligible for registration u/s.12A of the Act. Accordingly, we direct ld.CIT(Exemption) to grant registration u/s.12A of the Act, to the Assessee. Accordingly, Grounds of Appeal raised by the assessee are allowed. 9. In the result, appeal of the assessee is allowed. Delay : There is a delay of 172 days for filing appeal before this Tribunal. The Director of the Assessee filed an Affidavit containing reasons for the delay. We have perused the Affidavit and are convinced that there is sufficient and reasonable cause for the delay. Accordingly, we condone the Delay. Order pronounced in the open Court on 24 November, 2025. Sd/- Sd/- VINAY BHAMORE Dr.DIPAK P. RIPOTE JUDICIAL MEMBER ACCOUNTANT MEMBER पपणे / Pune; ददिधंक / Dated : 24 Nov, 2025/ SGR Printed from counselvise.com ITA No.1754/PUN/2025 [A] 8 आदेशकीप्रनिनलनपअग्रेनषि / Copy of the Order forwarded to : 1. अपऩलधर्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. नवभधगऩयप्रनिनिनर्, आयकर अपऩलऩय अनर्करण, “बऩ” बेंच, पपणे / DR, ITAT, “B” Bench, Pune. 6. गधर्ाफ़धइल / Guard File. आदेशधिपसधर / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपऩलऩय अनर्करण, पपणे/ITAT, Pune. Printed from counselvise.com "