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Judgment
PER BRAJESH KUMAR SINGH, AM,
This appeal by the assessee is directed against the order the Ld. Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as the ‘Ld. CIT(E)] order dated 30.09.2025 passed under clause (ii)(b)(B) of the second proviso to Section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) rejecting the application of the assessee filed in Form 10AB for grant of approval u/s 80G of the Act.
The relevant extract of the order dated 30.09.2025 of the ld. CIT(E) rejecting the aforesaid application of the assessee is reproduced as under:
“Order under Clause (il)(b)(B) of second proviso to section 80G(5) of income Tax Act, 1961
The applicant is a Trust. The applicant has filed an application dated 08.03.2025 in Form 10AB for approval u/s 80G of the Income Tax Act, 1961. The applicant was issued a questionnaire dated 24.04.2025 with a request to furnish certain details/documents/ clarifications in support of its claim of approval u/s 80G. The case was fixed for compliance on 09.05.2025.
2.The applicant has filed details and submitted by way of copy of trust deed, copy of bank statement, financial statement, Form 10AC etc.
3.On perusal of the documents filed by the applicant, it is noted that the applicant has not submitted complete details required vide questionnaire dated 24.04.2025. Hence, further opportunity was afforded vide letter dated 11.08.2025 to file the remaining details and some additional details / clarification / documents by 18.08.2025. It was also mentioned that in case of failure, the proceedings shall be decided on the basis of information available on record and no further opportunity will be granted being limitation matter.
4.: Based on documents submitted on 11.07.2025 following discrepancies are noted:
i)Trust is not irrevocable as well as trust deed does not contain 'Dissolution Clause.
ii) Almost 90% of its receipts are from rental income. These are not voluntary but commercial receipts. Further the applicant also failed to prove how the referred property is acquired & for what purpose it was acquired.
iii) Financial accounts for F.Y. 2021-22 are not audited.
iv) No photograph for any charitable activity is given.
v)The applicant has not provided beneficiary details.
vi) NOC for use of ownership is without proof of ownership.
5.In view of above discussion, the applicant has failed to satisfy genuineness of charitable nature of its activities. In light of above the application filed in Form 10AB for grant of approval u/s 80G is hereby rejected.
6.Since, the application filed in Form 10AB seeking approval u/s 8OG is rejected, the provisional registration granted vide order dated 27.10.2021 having unique registration number AADTS5079AF20212 issued for the period from 27.10.2021 to A.Y. 2024-25 is also cancelled.”
Aggrieved with the said order, the assessee has filed an appeal before us on the following grounds of appeal:
“1.That order passed by the Learned CIT(Exemption) by rejecting the application for approval u/s 80G, is bad in law, wrong on facts and is against the principle of natural justice.
2.That rejection order passed u/s 80G (5) of the Income Tax Act is based on conjecture and surmises.
3.That the Learned CIT(Exemption) failed to appreciate the fact that appellant Trust is very old and Income from property is regularly being utilized for the objects of the Trust.
4.That the learned CIT(Exemption) has erred in holding that beneficiary details are not given.
5.That appellant craves leave to add, alter, amend or forgo any ground(s) of appeal before or at the time of hearing.”
At the time of hearing, the Ld. AR filed a Paper Book, submitted the following documents as per the table below:
| S. No. | Particulars | Page no. |
| 1. | Copy of Latest Approval granted u/s 12AB(1)(b) on 02.02.2026 | 01-04 |
| 2. | Copy of Trust Deed | 05-12 |
| 3. | Copy of Supplementary Deed * | 13-14 |
| 4. | Copy of Notice dated 24.04.2025 along with replies submitted | 15-24 |
| 5. | Copy of Notice dated 11.08.2025 along with replies submitted | 25-28 |
| 6. | Copy of Audited Financial Statements for FY 2021-22 | 29-35 |
| 7. | Copy of newspaper article and sample receipts | 36-41 |
| 8. | Copy of NOC along with House Tax Receipt for the property | 42-43 |
| 9. | Copy of old Section 80G Certificate | 44-45 |
In the said table, the assessee inter-alia submitted copy of supplementary deed dated 06.11.2025 incorporating the ‘irrevocable clause’ in the Trust Deed as under:
“AND WHEREAS pursuant of PRINCIPLE DEED dated 30th day of March, 1998, the following clauses shall be further added after Clause No. 16 and shall form part of the original Trust Deed as under: --
17.The Trust is irrevocable Trust and Settlor will have no power to revoke the Trust or have any claim or interest thereon in the assets (Subject matter of the Trust) as duly mentioned in clause 1 of Principle deed dated 30th March 1998.
Further, the assessee also filed a copy of latest Approval granted u/s 12AB(1)(b) at dated 02.02.2026 placed at page no. 124 of the paperbook.
On the other hand, the Ld. CIT(DR) submitted that the order of the Ld. CIT(E) may be upheld.
We have heard both the parties and perused the material available on record. In this case, the assessee has incorporated the ‘irrevocable clause’ in the Trust Deed as referred above. Further, the assessee has been granted approval u/s 12AB(1)(b) of the Act by the Ld. CIT(E), Delhi vide order dated 02.02.2026 for A.Y. 2027-28 to 2036-37 (placed at page no. 01-04 of the P.B.) accepting the objects of the assessee to be of charitable in nature. Therefore, in the given facts, the grant of approval u/s 80G(5) of the Act cannot be denied to the assessee. Therefore, the Ld. CIT(E) is directed to grant the approval to the application filed by the assessee in Form 10AB under section 80G of the Act.
In the result, the appeal of the assessee is allowed.