New charitable trusts eligible for S.12AB registration based on charitable objects and proposed activities; non-commencement alone not grounds for denial.

आदेश/ORDER

PER PADMAVATHY.S, A.M:

This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions), Chennai (in short "CIT(E)") dated 29.09.2025. The issue contended in this appeal pertain to the denial of registration u/s. 12AB of the Income Tax, 1961 (in short "the Act").

2. The assessee is a charitable trust formed vide trust deed dated 15.07.2024. As per the trust deed, the objects of the trust are as listed below:

“1) To set up Out Patient Department, Clinic, Medical facilities to provide health care to public at large at concessional rates/free of cost.

2) Granting of financial assistance to deserving students, educational institutions for granting scholarships, prizes, medals, awards for excellence in studies, sports and scientific research, distribution of books and note books for poor and deserving students.

3) To spread public awareness of Heath Care and Preventive Health Care.

4) To grant aid and provide financial assistance to deserving people for medical treatment.

5) To promote high quality and innovative learning and development programmes, primarily in the field of Cardiology, Cardio-thoracic health, Cardio-thoracic and Vascular Surgery and related medical fields.

6) To advance public awareness in the fields of Cardiology, Cardio-thoracic health, Cardio-thoracic and Vascular Surgery and related disciplines.

7) Establishment, conduct, maintenance of clinical laboratories, hospitals, nursing homes, dispensaries and institutions of similar nature and providing financial assistance to the deserving persons for medical treatment, in any medical institution.

8) To conduct awareness programs including training in advancement in medical skills such as Robotic Surgery in advanced medical procedures.

9) Establishment, conduct, maintenance of old age homes, homes for physically challenged men, women and children and persons with similar disabilities and also for granting financial assistance to Institutions performing similar activities.

10) To organise lectures, conferences, seminars, meetings and workshops for doctors, medical support staff and public at large for purpose of dissemination of information, knowledge about development in medicine, best practices etc.,

11) To spread awareness about advancement of specialised treatment amongst medical fraternity. 2007

12) Providing Medical and Health related support to all without any discrimination to caste, creed or status.

13) To conduct awareness programs including training in Skill development of doctors in various medical programs.

14) To promote nutritional food programme and make nutritional food available to poor students.

15) To conduct awareness programs including training and Development of various illness.”

3. The assessee made an application for registration u/s. 12AB of the Act on 26.03.2025. The CIT(E) called on the assessee to furnish certain details including the financials and bank statement. After perusing the financial statements of the assessee, the CIT(E) held that:

“4.2.2 It is seen that the financials that the beneficiaries of the applicant trust are limited to particular sector i.e. doctors and not the public at large. A charitable institution, must function with the dominant purpose of benefiting the public or a section of the public. By seeking to promote and safeguard the interests of its members, the Society fails the essential public benefit test.

4.2.3 The activities of the applicant are, in fact, meant exclusively for its members. The above financials reinforce this position: the trust has received only membership fees and spent mostly on conference expenses, without undertaking any charitable activity. This shows that