S.J.S Foundation Vs CIT (Exemptions)
The CIT(E) rejected the assessee trust’s application for registration under Section 12AB citing doubts over genuineness of a ₹25 lakh donation to another trust and alleged violation of CSR rules due to common directors and lack of a 3-year track record.
The ITAT found that the assessee had already furnished relevant documents such as registration certificates (12A & 80G) of the recipient trust and statutory filings (Forms 10BD/10BE), which sufficiently established the genuineness of the donation. It held that non-submission of the trust deed alone cannot justify rejection, especially when details were verifiable independently.
Further, the Tribunal clarified that CSR rules do not mandate a 3-year track record where the implementing entity is set up by the company itself. Also, mere commonality of trustees and company directors cannot be a ground to doubt genuineness.
Accordingly, the ITAT set aside the CIT(E)’s order and directed grant of registration under Section 12AB as well as approval under Section 80G. Both appeals were allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The present appeals filed by the assessee are directed against the order passed by the Learned Commissioner of Income Tax (Exemptions) [hereinafter referred to as “the learned CIT(E)”] dated 30.09.2025.
