TaxTMI 
TaxTMI 
2026 (6) TMI 1482
X X X X Extracts X X X X
X X X X Extracts X X X X
....s found that the present appeal was filed by the assessee with a delay of 118 days and the assessee had filed an affidavit bringing out the reasonable cause for such delay and after going through the same and hearing the both parties, the same is found to be sufficient and hence the delay is condoned for adjudication of appeal on merits. 3. The brief facts of the case emanating from the records are that the assessee is a public charitable trust incorporated on 25.09.2003 and had filed its Form 10AB claiming registration u/s. 80G(5)(iii) of the Act on 20.02.2024. The said application filed by the assessee was rejected by the ld.CIT(E) by deeming the activities of the assessee to be in the nature of a Business Correspondent and concluded t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ture. The Ld.AR also demonstrated from the annual report of the assessee that the loans distributed by the assessee are also charitable in nature in implementing the specific schemes of the government for the downtrodden and argued these activities were also intrinsically linked to poverty alleviation and empowerment. 6. The Ld.AR also took us to each of the activities of the trust and submitted that the assessee had been providing educational support to hundreds of students and various other support to widows, unmarried women etc. It was also submitted that the assessee was enjoying the registration u/s. 12A of the Act both under the old regime and under the new regime. 7. The Ld.AR further submitted by placing on record the financia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s also granted by the Department for five years on 30.09.2021 by reckoning the activities carried out by the assessee as charitable. In this background, we find it deem fit to adjudicate the findings recorded by the ld.CIT(E) for rejecting the registration sought for u/s. 80G of the Act. 11. The main reason given by the ld.CIT(E), Chennai for rejecting the grant of registration is on the ground that the activities of the Assessee are in the nature of Business Correspondent which understanding of the ld.CIT(E) is found to be unacceptable in the absence of any findings demonstrating the commerciality in the overall activities of the trust. The Trust Deed itself authorizes activities such as formation of self-help groups, micro-credit progr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cidental activity cannot alter the essential character of the Trust and various activities provided by the assessee would fall within the ambit of uplifting of poor, medical relief, education etc. which activities of the trust cannot be completely ignored for the purpose of granting approval u/s. 80G of the Act. 15. It is also a settled position of law that at the stage of granting approval u/s. 80G of the Act, the competent authority is required to examine only the nature of objects and the genuineness of activities, and not to sit in judgment over the application of income or to recharacterize incidental activities as business, in the absence of any evidence of profit-oriented conduct. Further, we are of the view that the provisions in....