IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 946 of 2011 ==========================================================

COMMISSIONER OF INCOME TAX RAJKOT-II Versus SURAJBEN HARAKHCHAND MEHTA PUBLIC CHARITABLE TRUST ==========================================================

Appearance:

MAUNIL G YAJNIK(9346) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) for the Opponent(s) No. 1 ==========================================================

CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI Date : 03/12/2025

ORAL ORDER

(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)

1. At the outset learned advocates appearing for the respective parties have fairly submitted that the substantial question of law framed in the present tax appeal would get answered in view of the judgment passed by the Hon’ble Supreme Court in case of Ananda Social and Educational Trust Vs. Commissioner of Income Tax and Anr. Reported in (2020) 17 SCC 254 as well as the case of Commissioner of Income Tax (Exemptions) Vs. International Health Care Education and Research Institute reported in (2025) SCC Online SC 607.

2. In the present Tax Appeal, the appellant department has assailed the Judgment and Order dated 11.02.2011 passed by the Income Tax Appellate Tribunal, Rajkot in ITA No. 1333/2010.

3. Pursuant to the order dated 05.09.2012, the Division Bench of this Court framed the following substantial question of law :-

“We have heard Mr. Pranav Desai, learned Senior Counsel for the appellant.

ADMIT. We formulate the substantial question of law as under:-

“Whether the Appellate Tribunal is right in law and on facts in holding that the assessee trust was to be registered under Section 12A of the IT Act and the CIT was not empowered to make any enquiry for establishing the genuineness of the assessee trust?”

Issue Notice to the respondents. Paper bok be submitted within three months.”

4. The brief facts of the case are that Surajben Harkhchand Mehta Public Charitable Trust, Rajkot has come into existence on 01.11.2009 by executing a trust deed. The trust deed was registered with the Charity Commissioner on 15.04.2010. On 18.05.2010, the trust filed an application Form No. 10A for registration under Section 12AA of the Income Tax Act, 1961 (for short ‘ the Act’).

5. At the time of filing the present Tax Appeal and framing of the substantial question of law, the appellant Department has placed reliance on the Judgment passed by the Kerala High Court in the case of Self Employers Service Society Vs. CIT reported in 247 ITR 18 (Kerala) and the Judgment passed by Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust Vs. Director of Income Tax (Exemptions) in (2006) 155 Taxman 466 (Kar.) as well as the judgment passed by Punjab and Haryana High Court in the case of Aman Shiv Mandir Trust Vs. CIT in (2007) 162 Taxmann 412, and contended that tribunal has erroneously held that the Commissioner has to hold the inquiry and satisfy himself about the genuineness of the Trust and if it is found that the activities as referred while registration has not commenced, and not accepted to carry out any donation activities, and until the necessary enquiries get concluded and clarification is obtained from the office of the Commissioner, the Commissioner after holding such inquiry and after satisfying the genuineness of the activity of the Trust or the institution, may grant or reject the application for registration.

6. At this stage we may refer to the decision of the Supreme Court in the case of Ananda Social and Educational Trust (supra). The Supreme Court while examining the scope of the provision under Section

12AA of the Income Tax Act, 1961 has held thus:-

“18. The Income Tax Appellate Tribunal reversed the decision of the Commissioner of Income Tax on the basis of the judgment of the Delhi High Court in matters referred to above.

19. For the reasons stated earlier, we are of the view that the object of the provision in question is