Radhe Shamka Foundation Vs DCIT/ACIT (ITAT Amritsar)
The present appeal was filed by Radhe Shamka Foundation before the ITAT Amritsar challenging the order of the Ld. CIT (Exemptions), Chandigarh, dated 12 March 2025, which rejected the application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The rejection was based on alleged insufficient evidence and the department’s finding that no charitable activity was carried out at the earmarked premises following physical verification.
The assessee’s grounds of appeal highlighted multiple alleged errors in the CIT(E) order. These included: (i) treating the single questionnaire issued under Form 10AB as a Show Cause Notice and rejecting the application without considering submissions; (ii) ignoring documentary evidence of expenses incurred on charitable activities, including medical treatments totaling Rs. 1,34,160/- at Prakruti Ayurveda and Panchkarma Clinic; (iii) erroneously disallowing request letters from donation seekers and letters of appreciation supporting actual charitable work; (iv) rejecting salary payments to a trustee of Rs. 1,20,000/- based on absence of mention in the trust deed; (v) treating donations from a single entity, Stone Universe Pvt. Ltd., as a disqualifying factor; (vi) noting common trustees between the appellant trust and M/s Dignity Homes Trust as objectionable; and (vii) holding that a sign board was not previously displayed at the registered office. The assessee argued that all expenses were properly routed through banking channels and documentary proof of charitable work, including photographs, invoices, and communications, had been submitted.
