DHARWAD GROWTH CENTER INDUSTRIES ASSOCIATION,KARNATAKA vs. CIT (EXEMPTIONS), BANGALORE
Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI PRASHANT MAHARISHI & SHRI SOUNDARARAJAN K.
Per Prashant Maharishi, Vice President 1. These appeals are filed by Dharwad Growth Center Industries Association (the assessee/appellant) against the application made by the assessee for registration u/s. 12AB of the Income Tax Act, 1961 [the Act] rejected by the ld. Commissioner of Income Tax (Exemptions), [ld.
ITA Nos.356 & 357/Bang/2025
Page 2 of 10
CIT(E)] dated 27.12.2024 and rejecting the application u/s. 80G of the Act by order of the CIT(E) dated 26.12.2024, respectively.
2. The brief facts of the case show that assessee is a society registered under the Karnataka Societies Registration Act, 1960 in July, 2004
which is an industrial association operating in Dharwad and Belur
Industrial Area with the object of organising development programmes, resolving dispute of industries and making representation before the Government authorities. It is a non-profit organisation earlier registered u/s. 12AB from AY 2021-22 to 2025-26. 3. The assessee filed application in Form 10AB on 15.9.2024 for renewal of registration. The application of registration was enquired by the CIT(E) through the juri ictional AO wherein it was found that assessee has not received any donation and receipt from membership fees which are utilised for development of association. It reproduced the Income & Expenditure account for the year ended 31.3.2024 &
31.3.2023. It further held that the expenses were also not towards the charitable activities and therefore in para 7 the ld. CIT(E) held that assessee is required to submit the necessary documents to prove the genuineness of the activities of the trust. Accordingly the application filed by the assessee for registration u/s. 12AB of the Act was rejected and registration was cancelled.
4. The assessee is in appeal in ITA No.357/Bang/2025 against the same order.
ITA Nos.356 & 357/Bang/2025
Page 3 of 10
The application for registration u/s. 80G of the Act was made which was also rejected as application u/s. 12AB was rejected. The rejection order was identical. 6. The assessee is in appeal before us against both the above orders. 7. The assessee submitted that originally the assessee was granted registration u/s 12AB of the Act on 9.8.2024 in Form 10AD holding that assessee is carrying on charitable activity. The ld. AR furnished a paperbook containing 123 pages submitting Memorandum of Association, Registration Certificate with