[2025:RJ-JP:35765-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 60/2025 The Commissioner Of Income Tax- Exemption, Jaipur. ----Appellant Versus Shri Baba Balak Nath Seva Sansthan, Shivank 69/12, New Sanganer Road, Near Dhanwantri Hospital, Mansarovar, Jaipur- 302015, Rajasthan. ----Respondent For Appellant : Mr. Aditya Doda on behalf of Mr. Shantanu Sharma HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM HON'BLE MR. JUSTICE MANEESH SHARMA Order 08/09/2025 1. This appeal filed under Section 260A of the Income Tax Act, 1961 (for short ‘the Act’), raises a grievance against an order dated 15th October 2024, passed by the Income Tax Appellate Tribunal (ITAT). By the said order, the ITAT has allowed two appeals filed by the assessee, who is respondent before us. 2. Following substantial questions of law have been proposed in the appeal: “1. Whether in the facts and circumstances of the case and in law, the Learned ITAT was justified in holding that the assessee trust is entitled to registration u/s 12A of the Act 1961. Despite the fact that the specific objects 03 and 06 in the trust deed relate to activities such as development and sale of products from small cottage industries, handicrafts, carpentry, food processing etc., which are primarily in the nature of business trade and commerce and do not fall into the purview of definition of charitable purpose u/s 2(15) of the Act and as further interpreted by the Hon’ble Supreme Court in the case of ACIT (Exemptions) v/s Ahmedabad Urban Development Authority (Civil Appeal No.21762/2017, judgment dt. 19.10.2022) Taxmann.com 278(SC)? [2025:RJ-JP:35765-DB] (2 of 3) [ITA-60/2025] 2. Whether on the facts and circumstances of the case and in law, the Learned ITAT was justified in not deciding the issue whether the specific objects in trust deed are of business nature or not and merely allowed the registration of the Trust u/s 12AB of the Act 1961 on the basis of claim of the appellant trust that no activity related to these objects were carried out by the assessee? 3. Whether on the facts and circumstances of the case and in law, the Learned ITAT was justified in not appreciating the fact that the Trust was doing the activities beyond the objects specified in the MOA/deed of assessee trust?” 3. The assessee is a registered charitable trust whose applications for registration under Section 12AB of the Act were rejected. The applications were disallowed on two grounds, namely, object Nos.3 and 6 of the deed of the applicant relate to activities which, according to the Income Tax Officer, are commercial/business in nature and secondly, the activities carried out by the assessee were not in accordance with the objects of the trust. 4. The ITAT has come to a factual finding that the objects mentioned in the deed are not in the nature of business or commercial and secondly, the trust has not carried out any such activity. The ITAT has also come to a factual finding that the statement of income and expenditure account for the last five years also does not indicate that any such activity has ever been carried out. It is settled law that if the authority is coming to a finding that the objects in the deed are commercial or business in nature, then they should also give a finding that the dominant intention of the trust or the institution is profit making. That is not the case and that is also not reflected from the income and expenditure account. 5. As regards the alleged activities carried out by the assessee not to be in accordance with the objects of the trust, there is a [2025:RJ-JP:35765-DB] (3 of 3) [ITA-60/2025] factual finding that the events were organized by one Ms. Ritu Agarwal, as mentioned in the pamphlet and the ITAT came to a factual finding that it cannot be stated that any activity was conducted by the assessee trust against its objectives. 6. In the circumstances, no substantial question of law arises. Appeal dismissed. 7. Pending application, if any, also stands dismissed. (MANEESH SHARMA),J (K.R. SHRIRAM),CJ KAMLESH KUMAR-RAHUL/1