Income Tax Appellate Tribunal - Nagpur
Go Vigyan Anusandhan Kendra,Nagpur vs Cit Exemption , Pune on 14 May, 2025
IN THE INCOME TAX APPELLATE TRIBUNAL
NAGPUR BENCH, NAGPUR
BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND
SHRI K.M. ROY, ACCOUNTANT, MEMBER
ITA no.34/Nag./2025
(Assessment Year : N.A.)
Go Vigyan Anusandhan Kendra
1, Deolapur, Tq. Ramtek ................ Appellant
Dist. Nagpur 441 401 PAN - AABTG5753D
v/s
Commissioner of Income Tax
Exemption, Pune
................ Respondent
Assessee by : Shri Sanjay Thakar
Revenue by : Shri Sandipkumar Salunke
Date of Hearing - 01/04/2025 Date of Order - 14/05/2025
ORDER
PER K.M. ROY, A.M.
Assessee has filed this appeal challenging the impugned order dated 26/12/2024, passed in Form no.10AD, by the learned Commissioner of Income Tax (Exemption), Pune, ["learned CIT(E)"], rejecting the application dated 30/06/2024, filed by the assessee in Form no.10AB under clause (iii) of the first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 ("the Act").
2. In this appeal, the assessee has raised following grounds:-
"1] Learned Pr.CIT (Exemption), Pune erred in rejecting Appellant's Application for 80G(5).
2] Learned CIT(Exemption), Pune erred in not properly consider Appellant's Application and relevant supporting documents and submission filed before him at the time of hearing.2
Go Vigyan Anusandhan Kendra ITA no.34/Nag./2025 3] Learned CIT(Exemption), Pune erred in issuing Notice with Annexure are monotonicace and confusing the Appellant for compliance the details.
4] The finding given by CIT (Exemption), Pune for rejecting 80G(5) are not true, all the details required by CIT (Exemption), Pune are on record.
5] The Appellant crave to urge additional grounds at the time of hearing, if necessary."
3. It is deemed appropriate to extract the relevant portion of the impugned order dated 26/12/2024, denying final approval under section 80G(5) of the Act, passed by the learned CIT(E), Pune. The relevant portion of the findings of the learned CIT(E) is extracted below:-
"6. The assessee furnished its response on 27/11/2024. It is seen from the submission that the trust has not maintained any accounts as per the requirements of the audited financials. The trust has also not maintained any roster of doctors / expert / employees / staffs looking after the activities related to GAU (Cows). As such correctness of the financial statements remained questionable. The trust has failed to submit specific details as per point no 2(iii), 2(iv), 2(v), 2(vi) of the show cause notice so as to verify the authenticity of assessee claim. From financial statements, it is seen that the assessee has been in receipt of large income by way of medical/ clinical receipts and agricultural training charges. The assessee claims to have been engaged in these activities as charitable activities. However, from financials statements, it appears that the activities are being run on commercial basis rather than charitable one. In this connection, the assessee was specifically given opportunity of being heard vide the notice dated 21/11/2024. However, the assessee has not availed the said opportunity.
7. Considering the above facts discussed in the show notice and discrepancies noticed, the undersigned is not satisfied about the charitable nature and the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act.
8. In view of the above, the application filed by the assessee is hereby rejected and the provisional approval granted on 16/02/2022 under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 is hereby cancelled."
4. From the perusal of Page-130 of the Paper Book, it is apparent that registration under section 12AA of the Act was granted as Charitable Trust w.e.f. 01/04/2013, as provided under section 12A(1)(a), vide order dated 3 Go Vigyan Anusandhan Kendra ITA no.34/Nag./2025 28/08/2014, passed by the CIT (Exemption), Nagpur, and such registration is still subsisting as on date which is also not denied by the learned Departmental Representative. The details of activity pursued by the assessee Trust are enumerated below:-
"i. The assessee is registered under section 12A/12AA of the income tax act 1961, since 01/04/2013. Copy of the registration certificate is attached herewith for kind perusal of the Hon'ble office.
ii.
i. The assessee is engaged in a social activity of imparting skill for Govansh based agriculture, different uses of cow dung and urine, its medicinal propertles, uses, employment generation through Goshalas & effective Goshala Management etc. Since, it is engaged in skill development activities and imparting knowledge amongst the general public in a predeveloped and predefined system it comes under education and training activity and assessee has claimed it is engaged in educational activity. However, it is not affiliated with any of the university. The activity of imparting training and knowledge is a part of main object of the trust. The training center is being run from the same place from where main activity of the entity is carried out.
ii . Since the training activity is not affiliated to any of the university copies of the same are not submitted herewith.
iii. It takes a nominal fee of Rs. 1000/- from each participant for one time training, in which 5 days residence facility along with hygienic food is also served along with the cow based agricultural training as mentioned above. The training is open for all communities of the society irrespective of cast, creed, economic condition of the participant. It is training the farmers coming from the interior villages, tribal community residing in the forest area of nearby location specifically forest area of Vidarbha region.
iv. Since, the training activity belongs to main object of the trust separate receipt & payments for the training activity is not prepared.
v. Copies of Audited financials statements of the trust is already submitted, no separate financial statements for the activity are prepared.
vi. Copies of audit reports along with financial statements are already submitted in our earlier submission.
vii. The training activity is not affiliated to any university, hence RTE act does not applies to it.4
Go Vigyan Anusandhan Kendra ITA no.34/Nag./2025 viii. The training activities are conducted in a Land & premises owned by trust itself, copies of documents relating to ownership are already submitted, we are resubmitting the same for your kind perusal.
ix. No. Land is owned by the trust itself.
x. Details of all properties owned by trust are being submitting herewith.
xi. The staff employed at training center and in trust is a daily wages staff and are changing frequently, hence they are not covered under PF act.
xii. The trust has not raised any loans from any of bank or financial institution or third party.
iii. The list of donations received during last three financial years are attached herewith.
iv.
i. The trust is running only OPD (outdoor patients) and treating the patients through the patented & licensed products prepared from the Panchgavya & other ayurvedic medicinal plants & ingredients. Further it is not getting any grant from neither state government nor from central government. The activity is carried at nominal fees and clinic is run on no profit no loss basis. The clinic is open and treats all needy patients Irrespective of their cast, creed etc. Therefore, the norms of Section 41AA of Bombay Public Trust Act do not apply to it.
ii. The trust is charging Rs 200 as fees for treatment of patients, which does not recover the applied cost for the services rendered. The Panchgavya based Ayurvedic services (Health care) provided by the trust is only for demonstration and explaining the scientific and medicinal properties carried by the govash and its usefulness to the society. Therefore the clinical activity carried out by the trust is a charitable activity and public at large is benefited from It.
iii. The details of TDS returns & TDS deducted for visiting doctors for three years are attached herewith.
iv. The pending details for submission from previous notice is attached herewith.
v. The assessee is working for govansh & medical treatment through the "panchkarma". Its main object includes the clinical activity in point No 10 of the its Trust deed. The OPD center run by it is on charitable base only, and the clinics are run on no profit no loss basis. It also runs 2 clinics where it treats patients on charity basis. Further the trust is also engaged in research activities focused on medical treatment through the Panchgavya & Panchkarma & is constantly involved in various researches to formulate or develop medicines to cure/help human being in all kinds of illnesses.5
Go Vigyan Anusandhan Kendra ITA no.34/Nag./2025 Further the training activity run by it is covered by point No 14 of the object of trust whereby it imparts the skills & knowledge amongst the farmers. The assessee is engaged in a social activity of imparting skill for Govansh based agriculture, different uses of cow dung and urine, its medicinal properties, uses, employment generation through Goshalas & effective Goshala Management etc. Since, it is engaged in skill development activities and imparting knowledge amongst the general public in a predeveloped and predefined system it comes under education and training activity and assessee has claimed it is engaged in educational activity.
However, it is not affiliated with any of the university. The activity of imparting training and knowledge is a part of main object of the trust. The training center is being run from the same place from where main activity of the entity is carried out.
Since the training activity is not affiliated to any of the university copies of the same are not submitted herewith.
It takes a nominal fee of Rs. 1000/- from each participant for one time training, in which 5 days residence facility along with hygienic food is also served along with the cow based agricultural training as mentioned above. The training is open for all communities of the society irrespective of cast, creed, economic condition of the participant. It is training the farmers coming from the interior villages, tribal community residing in the forest area of nearby location specifically forest area of Vidarbha region.
Since the assesee is engaged in charitable activities by imparting crucial knowledge about Govansh based agricultural activity amongst farmers & providing health care activity based on panchgavya ayurveda is within the charitable objects laid down by its trust deed and public at large is benefiting from it, the referred citation does not applies to it.
vi. Details of donations for previous three years are being submitted herewith in given format.
3. Since the assessee is engaged in charitable activity through running Goshalas wherein it maintains about 2200 govansh mainly received through a decree by Hon'ble courts freed from the illegal transportation of animals/govansh, Research & development activities relating to Govansh, its Panchgavya namely Cow Dung, Cow Urine, Ghee, Milk, Curd etc., it has already researched and patented the research as useful for human consumption in various illnesses viz. cancer, Exima, and so on. It is also engaged in providing Panchgavya Ayurved based clinical health care services to public at large at a charitable negligible price. After seeing the farmers position in Vidarbha region it has researched Govansh based farming and has successfully developed the way outs and is sharing the knowledge to the farmers belonging to interior area of Vidarbha and is constantly getting positive feedback. Now a days various companies are also sponsoring the activities under CSR for the upliftment of small farmers. Therefore it is humbly requested that the social activities done by the organization is for the benefit of public, creating awareness about Govansh and animals, and considering the 6 Go Vigyan Anusandhan Kendra ITA no.34/Nag./2025 activities done by the organization the application should be considered and allowed."
5. The issue regarding running on commercial basis rather than on charitable basis is based on pure surmise and conjecture. Since once registration under section 12AA of the Act is left untouched, no such allegation by the Revenue is maintainable. Consequently, the impugned order passed by the learned CIT(E) is un-sustainable in accordance with law, facts and circumstances of the case. Accordingly, we set aside the impugned order passed by the learned CIT(E) and direct him to grant registration under section 80G of the Act. Thus, the grounds raised by the assessee are allowed.
6. In the result, assessee's appeal stands allowed.
Order pronounced in the open Court on 14/05/2025 Sd/- Sd/-
V. DURGA RAO K.M. ROY
JUDICIAL MEMBER ACCOUNTANT MEMBER
NAGPUR, DATED: 14/05/2025
Copy of the order forwarded to:
(1) The Assessee;
(2) The Revenue;
(3) The PCIT / CIT (Judicial);
(4) The DR, ITAT, Nagpur; and
(5) Guard file.
True Copy
By Order
Pradeep J. Chowdhury
Sr. Private Secretary
Sr. Private Secretary
ITAT, Nagpur