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Facts
The assessee filed an appeal against an order rejecting its application for registration under Section 12AB. The appeal was filed with a delay, which was condoned. The assessee failed to appear for the hearing and was set ex-parte.
Held
The Tribunal held that the assessee's activity of conducting historic cars rallies does not fit the definition of charitable purposes under Section 2(15) of the Act. The Tribunal found no reason to interfere with the CIT(E)'s order rejecting the application.
Key Issues
Whether conducting historic cars rallies constitutes a charitable purpose under Section 2(15) for registration under Section 12AB.
Sections Cited
12A, 12AB, 2(15), 80G
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Before: Shri S.S. Viswanethra Ravi&
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 28.06.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai.
We find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee called absent and set exparte. We proceed to decide the appeal on merits after hearing the ld. DR basing on the material available on record.
We find that this appeal is filed with a delay of 67 days. The assessee filed an affidavit for condonation of delay stating the reasons. On examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.
The assessee by name, Historical Cars Association of India, filed an application dated 15.12.2023 in Form 10AB under section 12A(1)(ac)(vi)B of the Income Tax Act, 1961 [“Act” in short] seeking registration under section 12AB of the Act. The ld. CIT(E) requested the assessee to furnish Note on activities and Annual Accounts/ Financial statements, certified copies of important documents for verification. The ld. CIT(E) noticed some inconsistencies in the details submitted by the assessee. The ld. CIT(E) issued show-cause notice dated 15.06.2023 to the assessee as to why the application in Form 10AB should not be rejected for the reasons, which are reflecting in pages 4 and 5 of the impugned order. According to the ld. CIT(E), the assessee filed explanation contending that the preservation of monuments or places or objects of artistic or historic interest can be correlated and linked with the objects preservation like vintage cars which are over and above 50-100 years old comes under sporting activity. The ld. CIT(E) discussed about the ancient monuments at page 6 of the impugned order and held that conducting historic cars rally does not fit into the definition of charitable purposes as defined under section 2(15) of the Act. Accordingly, the ld. CIT(E) rejected assessee’s application under Form 10AB seeking regular registration under section 12AB of the Act.
The ld. DR Ms. E. Pavuna Sundari, CIT submits that the assessee is not interested to prosecute its case before the Tribunal. She drew our attention to earlier proceedings and submits that the assessee remained absent in earlier occasion. She placed on record order dated 13.11.2024 in passed in assessee’s own case relating to application in Form 10AB seeking approval under section 80G of the Act and argued that this Tribunal confirmed the order of the ld. CIT(E) in rejecting the application seeking approval under section 80G of the Act. Further, she placed on record order dated 09.05.2025 in MA No. 45/Chny/2025 in assessee’s own case and submits that the assessee is not interested to prosecute its case except filing appeals before the Tribunal.
Having Heard the ld. DR and on perusal of the impugned order, we find that the assessee itself contended that preservation of monuments or places or objects of artistic or historic interest are fall under the definition of charitable purpose, but, however, nothing was brought on record before the ld. CIT(E) in support of the same. The ld. CIT(E) discussed the relevant provisions as inserted by Finance (No.2) Act, 2009 that “ancient monument” means any structure, erection or monument, or any tumulus or place of interment, or any cave, rock-sculpture, inscription of monolith, which is of historical, archaeological or artistic interest, or any remains thereof and includes: (a) the site of an ancient monument; (b) such portion of land adjoining the site of an ancient monument as may be required for fencing or covering in or otherwise preserving such monument; and (c) the means of access to and convenient inspection of an ancient monument – The Ancient Monuments Preservation Act, 1904.
However, we find that the activity of the assessee in conducting historic cars rally etc. does not fit into the definition of charitable purpose as defined under section 2(15) of the Act as also noted by the ld. CIT(E) and before us, nothing was brought on record to substantiate the claim of the assessee. Further, we note that vide its order dated 13.11.2024 in assessee’s own case in the Tribunal has observed that the assessee has not filed any details before the ld. CIT(E) when the assessee has filed application in Form 10AB seeking approval under section 80G of the Act. In the present case also, in the absence of filing of various details and documentary evidences in support of application in Form 10AB seeking registration under section 12AB of the Act, either before the ld. CIT(E) or the Tribunal, considering the reasons recorded by the ld. CIT(E), we find no reason to interfere with the order of the ld. CIT(E) in rejecting application in Form 10AB seeking registration under section 12AB of the Act. Thus, the grounds raised by the assessee are dismissed.
In the result, the appeal filed by the assessee is dismissed. Order pronounced on 17th July, 2025 at Chennai.