TaxTMI 
TaxTMI 
2025 (7) TMI 1666
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....tions) erred in not recognizing that the supplementary/amendment deed was duly made and executed on 10.02.2025, prior to the passing of the order of rejection. Grounds on significant activities of the Trust: 4. That the learned Commissioner of Income Tax (Exemptions) erred in not denying the fact that one of the appellant's main objectives is provide shelter to and empowerment of women who fall under marginalized groups. 5. That the learned Commissioner of Income Tax (Exemptions) erred in not appreciating the fact that 'empowerment of women' comes under 'advance of any other objects of general public utility'. 6. That the learned Commissioner of Income Tax (Exemptions) erred in not denying the fact that the appellant has incurred major expenses towards shelter to women who fall under marginalized groups. Grounds on expenses incurred towards other activities 7. That the learned Commissioner of Income Tax (Exemptions) erred in not considering the tact that the awareness drives, nutrition and health education, etc., was provided by the employees only who are health workers. Each of the above grounds is ....
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....n who fall under marginalized group: 2.1. The main objective of the appellant's initiative is to provide shelter, safety, health to and empowerment of women who are from the marginalized communities, including those affected by poverty, abuse, discrimination, and social exclusion. Recognizing the multiple challenges faced by these women, the program is designed to offer both immediate support and long-term empowerment. Through the establishment of safe shelters, the NGO ensures access to basic necessities such as secure accommodation, nutritious food, medical care, and emotional support. These shelters serve as a protective environment where women can begin to heal and regain a sense of security. Beyond providing shelter, the initiative focuses strongly on empowerment-equipping women with the tools and resources they need to build independent lives. This includes life skills education, health awareness, mental health counselling, and access to employment opportunities. The ultimate goal is to restore dignity, promote self-reliance, and support the social and economic integration of marginalized women, enabling them to live with confidence, purpose, and hope. Submission....
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....he learned Commissioner of Income Tax (Exemptions) failed to understand the nexus between the charitable activity and the amount spent by the appellant are towards the same objective. 2.7. It is stated here that there are 49 rental properties as on 31.03.2025 which caters to more than 4000 women beneficiaries who are under the marginalized section of the society. It is stated here that the learned Commissioner of Income Tax (Exemptions) did not recognize the fact that the major expenses were towards shelter, salary and security. Also, the learned CIT(E) stated that the appellant has no significant activity towards the main objectives of the trust. 2.8. Based on the above it can be inferred that there is nexus between the expenses and the charitable activity of the appellant which cannot be denied. The details of expenses incurred and the percentage of the same based on the total expenses is given below: SI.No. Expenditure Head Amount in Rs. % of Total Expense 1. Rent Expense for Beneficiaries 3,73,13,588 53.10% 2. Office Rent 1,84,800 0.26% 3. Staff Salary Paid 1,15,86,740 16.49% 4. Maintenance Charges 13,20....
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....ble Supreme Court in CIT v. Andhra Chamber of Commerce (1965) (55 ITR 722) (SC) it was held that the "advancement of any other object of general public utility" includes activities that promote the welfare of the public at large, even if they are not directly aimed at poverty relief or education. Therefore, women's empowerment through education, skill development, healthcare, legal aid, and livelihood support can be clearly justified as a charitable activity. 3. Ground No. 7 & 8 (additional Ground) - Ground on documentary evidence on expenses related towards awareness drives, nutrition and health education, yoga and aerobics training, etc.,: 3.1. As on 31.03.2025, the appellant has rented a total of 49 Residential Facilities (RFs) to provide shelter, safety, and health support for approximately 4,008 migrant workers. Of these RFs, 5 are designated for male occupants, 43 for female occupants, and 1 facility is shared by both. The details of the beneficiary are provided vide page no .45. to 4.6 of paper book. 3.2. To manage and operate these facilities, the appellant has engaged 106 employees, including Care Takers, Health Workers, Nurses, and Superviso....
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....ust was established even though the registered address and Key person are same. There is no restriction in the law to not to register in the same address and the intention for creation of the new trust is evident which is the jurisdiction and nature of the entity. Based on the above submissions it can be concluded that the appellant is a trust with a main objective of charitable activity being - shelter, safety, health and empowerment of women. The expenditure incurred is evident that the funds are utilised for the main objective of the trust only. Further all the activities conducted in the shelters are to support the migrant workers, majorly women who are from marginalised groups in the society. Further the appellant has received a sum of Rs. 7,02,76,146/- towards the expenses which is predominantly from CSR funds and if the trust registration is revoked then it creates a huge repercussion on the appellant trust and also on the doners. Hence it is prayed to your kind self to approve the recognition of the trust as a charitable trust under the section 12AB of the Act. 3. In addition to the above, the learned Counsel submitted that learned CIT(E) has wrongly re....