Swami Vivekanand Suvichar Sekshanik AVM Parmarthik Nyas Vs CIT (Exemption) (ITAT Indore)
This appeal concerns a charitable trust challenging the order dated 26.07.2024 passed by the Commissioner of Income Tax (Exemption), Bhopal, which rejected its application for final registration under section 80G of the Income Tax Act, 1961. The assessee raised multiple grounds, contending that the rejection was erroneous in law and on facts, particularly because the Commissioner concluded that the trust had not yet commenced charitable activities.
The assessee trust was established on 28.07.2014 and registered with the Registrar of Public Trust on 26.06.2015. Its stated objectives include promoting education, undertaking welfare initiatives, establishing and operating schools, colleges, libraries, and other institutions, promoting health, environmental causes, computer education, and working toward eradication of illiteracy. The trust commenced its activities on 10.10.2021, obtained provisional registration under section 80G on 10.03.2022, and later secured regular registration under section 12A read with section 12AB on 29.11.2023. On 18.01.2024, it filed Form 10AB seeking final approval under section 80G(5).
During the processing of this application, the Commissioner (Exemption) issued multiple notices calling for further details on 23.02.2024, 02.07.2024, and 19.07.2024. The assessee submitted detailed responses on 06.03.2024, 08.07.2024, and 24.07.2024, including documents, audit reports, and photographs of construction activities. Despite this, the Commissioner rejected the application solely on the ground that the trust had not conducted any charitable activities and was only engaged in constructing buildings, which according to the Commissioner did not constitute charitable activity for purposes of section 80G.
