2025 (1) TMI 1612 - AT - Income Tax

Appeal allowed; tax authority ordered to grant registration under section 80G as trust's activities are charitable

M/s. Bharath Institute of Schooling Education Versus The Commissioner of Income Tax (Exemptions), Bangalore

ITAT allowed the appeal, directing the tax authority to grant registration under section 80G. The tribunal found the trust's activities genuine and its ... Denial of registration u/s. 80G - permanent registration u/s.12A granted already - HELD THAT:- Activities of the assessee are genuine and the objects of the assessee trust are charitable in nature. As evident from the fact, that the assessee has been granted permanent registration u/s. 12AA . We observe that while considering the application of assessee for grant of registration u/s. 80G, the ld. CIT(E) has inadvertently/wrongly referred to provisions of section 80G(2) of the I.T. Act. These provisions are applicable for claim of deduction of the sums paid to the charitable organization. Relevant clause for considering the grant of registration u/s. 80G is sub-section (5). Assessee has fulfilled all the conditions prescribed u/s. 80G(5) and hence entitled for registration of 80G. It is settled position of law that at the time of granting of registration, the authority has to see whether the objects of the applicant is charitable in nature and the activities of the applicant are genuine or not. The benefits of section 11 & 13, application of funds collected by the charitable organization, are to be examined during the course of assessment proceedings u/s. 143(3) or any under any other section, as the case may be. Whether the student course fee falls under the category of donation or not, is not at all relevant in the present proceedings. Therefore, appeal of the assessee is allowed and the CIT(E) is directed to grant 80G to the assessee. Appeal of the assessee is allowed. The assessee, a trust formed by trust deed dated 28.11.2017 with charitable objects to impart education, held provisional registration u/s.12A and provisional 80G; permanent registration u/s.12A granted on 30.9.2024. Application for permanent registration u/s.80G dated 27.3.2024 was rejected by the ld. CIT(Exemptions) relying on section 80G(2). The Revenue conceded that reliance on s.80G(2) was erroneous. The Tribunal found that s.80G(2) 'are applicable for claim of deduction of the sums paid to the charitable organization,' whereas the 'relevant clause for considering the grant of registration u/s.80G is sub-section (5).' It concluded the assessee 'has fulfilled all the conditions prescribed u/s.80G(5) and hence entitled for registration of 80G.' The Tribunal emphasized that at the registration stage the authority need only verify that the objects are charitable and activities genuine; benefits under sections 11 & 13 and application of funds are to be examined in assessment proceedings. The appeal was allowed and the CIT(E) directed to grant 80G.