Jat Sewa Sangh vs ITO(Exemption)

PER M. BALAGANESH, AM

The appeal in ITA Nos. 6038 & 6039/Del/2025 for AY 2018-19, arises out of the order of the ld ld. Commissioner of Income Tax (Exemptions), New Delhi [hereinafter referred to as ‘ld. CIT(E)’, in short] dated 27.08.2018 for registration of u/s 12AA and 80G of the Income Tax Act, 1961.

At the outset, we find that there is a delay in filing of appeals by the assessee before us by 2527 days. The first application seeking registration under section 12AA of the Act and exemption under section 80G of the Act was filed by the assessee before the Learned CIT (Exemptions) on 20-02-2018 manually. The Learned CIT( Exemptions) even caused a hearing by taking cognizance of the application of the assessee by seeking various details and documents. Later the said application was rejected vide order dated 27-8-2018 merely on a technical ground that pursuant to CBDT Notification dated 19-2-2018 amending Rule 17A of the Income Tax Rules, the application in Form No. 10A need to be filed only electronically, whereas the assessee had filed the application manually. Accordingly, the assessee filed a fresh application electronically in Form No. 10A on 29-12-2018. Subsequently this Tribunal after examining the objects of the Trust, directed that registration under section 12AA of the Act and approval under section 80G of the Act be granted to the Trust. However, the registration came to be granted from Assessment Year 2019-20 whereas the original application related to Assessment Year 2018-19. Pursuant to this, notice under section 148 of the Act stood issued to the assessee for the Assessment Year 2018-19 and during the course of reassessment proceedings, it was noticed by the assessee that registration under section 12AA of the Act has not been granted for the Assessment Year 2018-19. Accordingly the assessee had preferred this appeal before this Tribunal with a delay of 2527 days. Considering the aforesaid reasons, we are convinced with the reasons adduced for the delay and hence we are inclined to condone the delay in filing of appeals before us and admit the appeals for adjudication.

The only issue to be decided in this appeal is as to whether the Learned CIT(E ) was justified in not granting registration under section 12AA of the Act and approval under section 80G of the Act for the Assessment Year 2018-19 when the objects of the Trust remain the same from the inception.

We have heard the rival submissions and perused the materials available on record. The assessee Trust was created on 12-05-2017 with the primary object of undertaking charitable activities for the welfare of society. The Trust aims to promote education, skill development and community welfare, including establishing educational and vocational training institutions, providing learning opportunities to individuals irrespective of caste or religion and undertaking activities for social development and advancement of modern agricultural practices. There is absolutely no dispute that the aforesaid objects of the trust are charitable in nature within the meaning of section 2(15) of the Act. It is a fact that assessee Trust has been granted registration under section 12AA of the Act and approval under section 80G of the Act with effect from assessment year 2019-20. It is pertinent to note that the objects of the assessee Trust remain the same right from the inception. There is absolutely no change in the activities or objects of the assessee Trust from the inception. It is a fact that the first application seeking registration under section 12AA of the Act and approval under section 80G of the Act was made by the assessee on 20-2-2018 manually. Obviously, when this application was made, the assessee only sought registration under section 12AA of the Act and approval under section 80G of the Act with effect from 12-5-2017 being the date of creation of the Trust, relevant to assessment year 2018-19. The said application got rejected on the technical ground that it was filed manually instead of filing electronically. Hence, it is very clear that the registration has been denied for assessment year 2018-19 only on technical ground and not on the ground that objects of the trust are not charitable in nature. The provisions of section 12A(2) of the Act are very clear that the exemption under section 11 and 12 of the Act shall apply in relation to the income of such trust from the assessment year immediately following the financial year in which such application is made. As stated earlier, the application has been made in the financial year 2017-18 relevant to assessment year 2018-19. Once the objects remain the same and found to be charitable and the learned CIT (exemptions) had indeed granted registration under section 12AA of the Act and approval under section 80G of the Act to the assessee trust from assessment year 2019-20 onwards, there is no reason to deny the registration under section 12AA and approval under section 80G of the Act for assessment year 2018-19. Hence, we have no hesitation in directing the learned CIT (exemptions) to grant registration to the assessee from assessment year 2018-19 onwards and grant approval under section 80G of the Act from assessment year 2018-19 onwards. Accordingly, the grounds raised by the assessee for both the years are allowed.

In the result, both the appeals of the assessee are allowed.