2025 (7) TMI 435

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....0G of the Act respectively. 2. Since both the appeals involve common issues, they were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. Brief facts of the case are that the assessee is a public charitable trust duly registered under the Indian Trusts Act, 1882. The object of the trust was to promote environmental sustainability by encouraging the use of electric vehicles, reducing carbon emissions and supporting scalable and climate resilient transportation solutions as part of the CSR vision. The ld. CIT(E) has denied grant of registration u/s 12AA and 80G of the Income-tax Act, 1961 [the Act, for short] stating that the rental activity of the assessee shows that it is commercial in ....

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....ee which covers maintenance cost of vehicle if any and ensures accountability of end user and will help to make the project sustainable. 7. It was further submitted that while the CSR project undertaken by the assessee may incidentally generate surplus in the form of monthly user fees or other revenue, such income is neither retained as profit nor diverted for personal or commercial use. In accordance with Rule 7(2) of the Companies (CSR Policy) Rules, 2014, any surplus arising out of CSR activities is not treated as business income, but is strictly reinvested into the CSR project itself or utilized towards other eligible CSR activities undertaken by the Appellant. The said surplus is applied solely to enhance, scale, and sustain the CSR....

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....eement with assignees, it can be seen that there is no profit motive. The ld. counsel for the assessee submitted that at this juncture, the Revenue is supposed to examine the genuineness of the trust's activities and if there is any mis-utilization, the Revenue can cancel the registration in a future date. 11. We have heard the rival submissions and have perused the relevant material on record. We find that the assessee has received CSR funds: Rs.34,00,000 from Betul Wind Farms Ltd., 1,74,039 from Transmec (India) Pvt. Ltd., 20,00,000 from Sab Ka Mangal Ho Foundation. These Funds were used for procurement and assignment of Ather electric vehicles to 10 eligible beneficiaries at a monthly rent of Rs 5500/-. 12. We further find that the....