SOCIETY FOR CLINICAL GASTROENTEROLOGY,CHANDIGARH V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH

ITA 110/CHANDI/2025

AI Insights

The case involves the Society for Clinical Gastroenterology, which appealed against the rejection of its application for permanent registration under section 80G(5)(iii) of the Income Tax Act. The CIT (Exemptions) had previously granted provisional approval but denied permanent registration on the grounds that the society had not commenced any activities since its establishment. The tribunal examined the arguments and precedents cited by the appellant but found no basis to overturn the CIT (E)'s decision, emphasizing the need for the commencement of activities to assess the genuineness of charitable purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705895 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: misc
• Other Referred Cases: M/s Just Be Foundation Trust (ITA No.3678/Del/2018), Hemda Medi Resources Pvt. Ltd. (ITA N.679/JP/2015)
• Laws Referred To: Section 80G(5)(iii), Societies Registration Act, Section 12A
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KUREEL LD
• Assessee Lawyers: HARISH NAYYAR LD
• Section: 12A; 80G

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.110 /CHANDI/2025 Society for Clinical Gastroenterology Block F, PGI, Sector 12, UT Chandigarh. 160012. बनाम/ Vs. CIT (Exemption) Chandigarh. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAXTS-2427-E (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Harish Nayyar (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Rajat Kumar Kureel (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 30-06-2025 घोषणाकीतारीख /Date of Pronouncement : 04-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of registration application as filed by the assessee seeking approval u/s 80G(5)(iii) vide impugned order dated 02-12-2024 of Ld. CIT(Exemptions), Chandigarh [CIT(E)], the assessee is in further appeal before us. Upon perusal of Para-4 of the impugned order, it could be seen that the application has been rejected for the reason that the assessee did not commence any activity since its existence. In the absence of any activity, nature and genuineness of the charitable activities could not be determined and accordingly, the 2 application was rejected. Aggrieved, the assessee is in further appeal before us. 2. From the car records / facts, it emerges that the assessee was set up on 20-03-2018 and it was registered under Societies Registration Act. The assessee was granted registration u/s 12A w.e.f. AY 2019-20 onwards pursuant to the order of the Tribunal. Subsequently, the assessee was granted provisional approval u/s 80G for the period 06- 04-2022 to AY 2024-25. The assessee sought permanent registration which got rejected vide impugned order for the reason that it did not commence its activities. As per the proviso (iii) to sub-section (5), the assessee is required to apply for registration at least 6 months prior to expiry of period of provisional approval or within 6 months of commencement of its activities, whichever is earlier. The Ld. AR has argued that it has nowhere been stated that registration could not be granted in the absence of commencement of activities by the trust. To support the same, Ld. AR has referred to certain decisions of the Tribunal. However, we find that as per clause (ii) of second proviso, the registering authority may call for such documents or information from the assessee or could make appropriate inquiries so as to satisfy himself about (A) the genuineness of activities of such institution or fund; and (B) the fulfillment of all the conditions laid down in clauses (i) to (v). It is an undisputed fact that the assessee has not commenced its activities and therefore, the genuineness of activities of the assessee- trust could not be ascertained. No such material has been shown to us. In such a case, the registration, in our considered opinion, has rightly 3 been denied by Ld. CIT(E). The decision of Delhi Tribunal in M/s Just Be Foundation Trust (ITA No.3678/Del/2018) has been rendered in the contest of pre-amended law. The decision of Jaipur Tribunal in the case of Hemda Medi Resources Pvt. Ltd. (ITA N.679/JP/2015) is distinguishable on facts and would not apply to the facts of the present case before us. Therefore, we upheld the impugned order. 3. The appeal stand dismissed. Order pronounced on 04-07-2025. Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 04-07-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH "