Shree Jagat Guru Vs CIT(E) (ITAT Delhi)
The assessee, Shree Jagat Guru, appealed against the denial of registration under section 12AA(1)(B)(ii) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Chandigarh. The CIT(Exemption) had rejected the application because the assessee had shown corpus donations, government grants, and building funds in its balance sheet for FY 2015-16, 2017-18, and 2018-19, rather than treating them as income in the Income & Expenditure account. The CIT noted that corpus donations are exempt only under section 11(1)(d) if the trust is registered under sections 12A/12AA, and failure to report these amounts as income rendered the assessee ineligible for registration.
The ITAT Delhi observed that the CIT(Exemption) had considered only past corpus donations and grants, rather than examining the trust’s objectives in its deed against the activities proposed. The Tribunal held that corpus donations could be assessed only in section 11 exemption proceedings. Consequently, ITAT set aside the CIT(Exemption)’s order, directing a fresh decision strictly based on the assessee’s object clauses and proposed activities. The assessee’s application was allowed for statistical purposes, with the responsibility to prove the case resting with the assessee. The order was pronounced on 3rd November 2025.
