Jagruti Public Charitable Trust Vs ITO (ITAT Mumbai)
ITAT Pune: Procedural Lapse Cannot Deny 12A Registration – Matter Remanded for Fresh Consideration
The assessee trust applied for registration under section 12A and approval under section 80G, which were rejected by the CIT(E) citing doubts on genuineness of activities and violation of section 36A of the Maharashtra Public Trust Act due to taking loans without prior approval.
The trust explained that loans were taken from trustees to meet operational needs due to delay in government funding, were fully utilized for charitable purposes, and later repaid. It also obtained ex-post facto approval from the Charity Commissioner and filed an updated return discharging tax liability.
The ITAT observed that non-obtaining prior approval is a procedural lapse and cannot by itself lead to rejection if charitable activities are genuine. Relying on earlier tribunal rulings, it held that the CIT(E) had wrongly doubted genuineness without proper basis.
Accordingly, the Tribunal set aside the order and remanded the matter to the CIT(E) for fresh adjudication after considering evidences and approvals. The issue of 80G approval was also restored as consequential.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The above two appeals filed by the assessee are directed against the separate orders both dated 20.06.2025 of the Ld. Commissioner of Income Tax (Exemption), Pune (“CIT(E)”) rejecting the application(s) for grant of registration u/s 12A and approval u/s 80G of the Income Tax Act, 1961 (the “Act”). For the sake of convenience, both these appeals were heard together and are being disposed of by this common order.
