" \n \nIN THE INCOME TAX APPELLATE TRIBUNAL \nNAGPUR BENCH, NAGPUR \n \nBEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND \nSHRI K.M. ROY, ACCOUNTANT, MEMBER \n \nITA no.629/Nag./2024 \n(Assessment Year : N.A.) \n \nSanghvi J.J. Gulabchand Charitable Trust \n75, Wardhaman Nagar \nNagpur 440 008 PAN – AADTS5390N \n \n……………. Appellant \n \nv/s \n \nIncome Tax Officer \nWard–1, Exemption, Nagpur \n \n……………. Respondent \n \nITA no.630/Nag./2024 \n(Assessment Year : N.A.) \n \nR.S. Pandit And Aamyanti Pandit \nCharitable Trust, Plot no.111–A, Rajni \nDagdi Park, New Ramdaspeth \nNagpur 440 010 PAN – AAATR1626H \n \n……………. Appellant \n \nv/s \n \nIncome Tax Officer \nWard–1, Exemption, Nagpur \n \n……………. Respondent \n \nITA no.631/Nag./2024 \n(Assessment Year : N.A.) \n \nUrmi Pandit Charitable Trust \nPlot no.111–A, Rajni \nDagdi Park, New Ramdaspeth \nNagpur 440 010 PAN – AAATU0205D \n \n……………. Appellant \n \nv/s \n \nIncome Tax Officer \nWard–1, Exemption, Nagpur \n \n……………. Respondent \n \nAssessee by : Shri Abhay Agrawal \n \n \nRevenue by : Shri Sandipkumar Salunke \n \nDate of Hearing – 18/02/2025 \nDate of Order – 21/03/2025 \n \n \n\n2 \n \nSanghvi J.J. Gulabchand Charitable Trust \nITA no.629, 630 & 631/Nag./2024 \n \n \nO R D E R \n \nPER K.M. ROY, A.M. \n \n \n \nThese appeal by the assessee are emanating from the impugned order \ndated 13/11/2024 (in ITA no.629/Nag./2024) and orders of even date \n18/11/2024 (in ITA no.629–630/Nag./2024), passed in Form no.10AB, by the \nlearned Commissioner of Income Tax (Exemption), Pune, [“learned CIT(E)”], \nrejecting the application filed by the assessee in Form no.10AB under clause \n(ii) of sub–section (5) of section 80G of the Income Tax Act, 1961 (\"the Act\") \nthereby denying registration section 80G of the Act. \n \n2. \nSince the grounds are common and inter–linked, a common order is \npassed for convenience by taking appeal in ITA no.629/ Nag./2024, as a lead \ncase. \n \n3. \nThe learned Counsel for the assessee had briefly submitted as under:– \n \n“1. Background and Registration of the Trust: \n \n1.1 The appellant, Urmi Pandit Charitable Trust, was incorporated on \n17.01.2002 and has been carrying out charitable activities for the past 22 \nyears. The trust has been duly registered under section 12A of the Income-tax \nAct, 1961, and has been filing its Income-tax Returns and Audit Reports \nregularly within the prescribed statutory time limits. \n \n1.2 The trust is also registered under the Bombay Public Trusts Act (BPT Act) \nunder Registration No. E-1728 and has been regularly submitting audit reports \nunder the said Act. \n \n2. Previous 80G Registration and Compliance: \n \n2.1 The appellant trust was previously registered under section 80G(5) (vi) of \nthe Income-tax Act, 1961, by the competent authority. Following the Taxation \nand Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, \nall existing approvals under section 80G(5)(vi) required re-application within \nthree months from April 1, 2021. However, due to a bona fide mistake, the \nappellant inadvertently applied under wrong clause (iv) instead of clause (i) of \nthe first proviso to section 80G(5). \n\n3 \n \nSanghvi J.J. Gulabchand Charitable Trust \nITA no.629, 630 & 631/Nag./2024 \n \n \n \n2.2 Despite this procedural error, the trust was granted provisional \nregistration under clause (iv) for the period up to AY 2024-25. Trust was \nentitled to a regular approval under clause (i) for five years since it was \nalready registered prior to amendment. \n \n3. Application for Renewal and Subsequent Rejection: \n \n3.1 On 20.05.2024, the appellant filed an application for renewal under clause \n(ii) of the first proviso to section 80G(5). However, the learned CIT \n(Exemptions), Pune, rejected the application vide order dated 13.11.2024 on \nthe sole ground that the appellant had not submitted a copy of the regular \n80G(5)(vi) approval order in Form 10AC, as required under Rule 11AA(2)(e). \n \n3.2 It is submitted that the rejection was merely based on a procedural defect \nand not on any deficiency in the trust's charitable activities.” \n \n4. \nThe learned Counsel for the assessee prayed that the direction may be \ngiven to the learned CIT(E) to ignore the inadvertent mistake and to process \nrenewal application accordingly. He submitted that the Trust is enjoying \nregistration under section 12AA of the Act till the assessment year 2026–27 \nand prayed that the approval under section 80G of the Act may be extended \ntoo. \n5. \nWe find that similar matter came up before the Tribunal, Jaipur Bench, \nin Hemdha Medi Resources Pvt. Ltd. v/s CIT, [2016] 159 ITD 627 (Jaipur), \nwherein the Tribunal decided the issue in favour of the assessee and against \nthe Revenue by holding as under:– \n \n“2.9 We have heard the rival contentions and pursued the material available \non record. Firstly, it is interesting to note that it is for the third time that the \nappellant has filed the subject application under section 80G(5) and on the \nprevious occasions, the reasons cited by the Id CIT varies from assessee not \nregistered u/s 12AA to registration certificate u/s 12AA not enclosed with the \napplication and hence, it is not eligible for approval u/s 80G(5)(vi). The \nreasons cited in the impunged order states that seeing the insignificant nature \nof activity, the case does not seems to be fit for granting exemption u/s 80G \nat this stage. The question that arises for consideration is whether the reason \ncited by the Id CIT justifies denial of approval under section 80G(5) of the Act. \nOn perusal of section 80G(5) as well as Rule 11AA, what is required to be seen \nis whether the institution/fund has been established in India for a charitable \n\n4 \n \nSanghvi J.J. Gulabchand Charitable Trust \nITA no.629, 630 & 631/Nag./2024 \n \n \npurpose or not. Secondly, it lays down certain additional conditions under \nclause (i) to clause (v) which are required to be fulfilled. Rule 11AA provides \nthat where the CIT is satisfied that one or more of the conditions specified in \nclause (i) to clause (v) of section 80G(5) are not fulfilled, he shall reject the \napplication for approval after recording his reasons for such rejection. In the \ninstant case, the appellant has been duly registered under section 12AA which \nshows beyond any doubt that Id CIT has already verified the genuineness of \nthe objects and its activities are not doubted by the CIT. Hence, having \ngranted registration u/s 12AA, the first condition regarding establishment of \ninstitution for charitable purposes is fulfilled. Regarding satisfaction of \nadditional conditions specified in clause (i) to clause (v) of section 80G(5), \nthere is no dispute as apparent from the order of the Id CIT. As can be seen \nfrom Revenue's stand of rejection of earlier applications filed by the appellant, \nthe approval under section 80G is closely linked to approval under section \n12AA. Now once, the registration under section 12AA has been granted, the \napproval under section 80G should not be denied unless the case of the \nappellant falls under non-fulfillment of one or more of the conditions specified \nin section 80G(5) which is not the case before us. Regarding the activities \ncarried out by the appellant towards achievement of its object for \nestablishment of the hospital and medical college, it cannot be said that \nassessee has not yet commenced any activity. The CIT has accepted that \nassessee has taken steps for implementation of its objects in as much as it \nhas acquired the land, converted the land for institutional use for setting up \nthe hospital project, appointed the architect., carried out soil testing etc. All \nthese activities are towards the achieving the objects of the trust. The \nregistration under section 25 of the companies Act has been granted on \n13.10.2012, subsequently the land was acquired on 29.3.2013 and thereafter \nother activities like conversion of land use, appointment of architects and soil \ntesting has been done. The project of setting up hospital and medical college \nis a complex project requiring various approvals, clearances etc which the \nappellant has been complying with. It is critical that as part of fund raising \nprogramme for this project, the appellant has sought the approval under \nsection 80G whereby the donations can be accepted for approved purposes \nand the project can be expedited. The approval under section 80G will thus aid \nand provide the necessary support in successful completion of the project. In \nour view, Id CIT (Exemption) was not correct in denying the approval under \nsection 80G(5) to the appellant. \n \n2.10 Further, we have gone through the decision of decision of Coordinate \nBench in case of Pearls Educational Institute (supra). The said decision was \nrendered in the context of renewal of approval under section 80G and the fact \nthat the appellant in that case had not commenced construction activities even \nafter 3 years which is distinguishable on facts as stated above. In our view, \nthe said decision doesn't support the case of the Revenue. In fact, the Hon'ble \nAllahabad High Court in case of Hardayal Charitable and Educational Trust \n(supra) is directly on the issue and supports our view. In that case, assessee \ntrust applied for grant of registration u/s 12AA and approval u/s 80G(5). The \nCIT refused to grant registration and approval on grounds that trust was in \nprocess of construction of college for studies and that huge amount was spent \non advertisement and promotion of business of its family concern. In \nsubsequent assessment year, registration u/s 12AA and approval 80G was \ngranted with conditions that exemption certificate would be effective from A.Y. \n2012-13. It was held that:- \n\n5 \n \nSanghvi J.J. Gulabchand Charitable Trust \nITA no.629, 630 & 631/Nag./2024 \n \n \n \n\"For registration u/s 12AA which was necessary for claiming exemption u/s 11 \nand 12, CIT was not required to look into activities, where such activities had \nnot or were in process of its initiation. Where a trust set up to achieve its \nobjects of establishing educational institution, was in process of establishing \nsuch institutions, and receives donations, registration u/s 12AA cannot be \nrefused on ground that Trust had not yet commenced charitable or religious \nactivity. Enquiry of the CIT at such preliminary stage should be restricted to \ngenuineness of objects and not activities unless such activities had \ncommenced.\" \n \n2.11 Interestingly, the decision of the Coordinate Bench in case of Hardayal \nCharitable and Educational Trust (supra) which was overruled by the \nAllahabad High Court was quoted by the Revenue while denying the exemption \ninitially to the appellant under section 12AA. Given that the appellant has \nsubsequently been granted approval under section 12AA and the said decision \nof the Coordinate Bench is overruled by the High Court shows that the \nappellant is well within its right to seek approval under section 80G as well. In \nview of above, the CIT(Exemption) is hereby directed to grant approval u/s \n80G(5) of the IT Act, 1961 to the appellant. \n \nIn the result, the appeal filed by the assessee is allowed.” \n \n6. \nRelying upon the binding precedent and since the facts before us are \nidentical, the learned CIT(E) is hereby directed to grant approval under \nsection 80G of the Act in all the three cases. \n \n7. \nIn the result, assessee’s appeals stands allowed. \nOrder pronounced in the open Court on 21/03/2025 \n \nSd/- \nV. DURGA RAO \nJUDICIAL MEMBER \n \n \n \n \n \n Sd/- \nK.M. ROY \nACCOUNTANT MEMBER \nNAGPUR, DATED: 21/03/2025 \n \n \n \n \n \n \n \n \n \n \n\n6 \n \nSanghvi J.J. Gulabchand Charitable Trust \nITA no.629, 630 & 631/Nag./2024 \n \n \n \n \n \n \n \n \nCopy of the order forwarded to: \n \n(1) \nThe Assessee; \n(2) \nThe Revenue; \n(3) \nThe PCIT / CIT (Judicial); \n(4) \nThe DR, ITAT, Nagpur; and \n(5) \nGuard file. \n \n \n \n \n \n \n \n True Copy \n By Order \nPradeep J. Chowdhury \nSr. Private Secretary \n \n \n \n \n \n \n \n \n \n Sr. Private Secretary \n ITAT, Nagpur \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n"