CENTRE FOR URBANISATION BUILDINGS AND ENVIRONMENT (CUBE), ,CHENNAI vs. ITO, EXEMPTIONS WARD 4,, CHENNAI
आयकर अपीलीय अिधकरण‘बी’ ायपीठ, चेई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘B’ BENCH: CHENNAI
माननीयीमनुकुमार िग र, ाियकसद! एवं
माननीय एस. आर. रघुनाथा, लेखा सद! के सम)
BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON’BLE S.R. RAGHUNATHA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No.3280/Chny/2024
िनधा9रण वष9 /Assessment Year: 2024-25
Centre for Urbanisation Buildings and Environment (CUBE),
IIT Madras Research Park,
Module No.6C, 6th Floor,
Kanagam Road, Tharamani,
Chennai – 600 113. [PAN: AADAC 1627M]
Vs.
The Income Tax Officer,
Exemptions Ward-4,
Chennai.
(अपीलाथ/Appellant)
( यथ/Respondent)
अपीलाथE की ओर से/ Appellant by :
Shri S. Muralidhar, FCA &
Shri J. Prabhakar, FCA
GHथE की ओर से /Respondent by :
Ms. Gouthami Manivasagam, JCIT
सुनवाई की तारीख/Date of Hearing
:
02.06.2025
घोषणा की तारीख /Date of Pronouncement
:
06.06.2025
आदेश / O R D E R
PER MANU KUMAR GIRI, J.M: This appeal preferred by the appellant / assessee is against the rejection of 80G(5) of the Income-tax Act, 1961 (hereinafter “the Act”) application filed by the assessee in Form-10AB dated 27.02.2024 observing that the activity of the assessee is commercial in nature by the Ld. Commissioner of Income Tax (Exemption), Chennai Centre for Urbanisation Building and Environment
:- 2 -:
[hereinafter “Ld.CIT(E)”] and noted that the assessee was mandated to submit the necessary documents to prove the genuineness of the activities of the trust or institution and fulfillment of all the conditions laid down in clause 1 to 5 of section 80G. Accordingly, the approval u/s.80G of the Act was rejected and approval cancelled vide order dated 30/10/2024 by the Ld. CIT(E) in Application No.CIT
(Exemption), Chennai/2024-25/12AA/12001 vide DIN & Notice No.
ITBA /EXM/F /EXM45/2024-25/1070053179(1).
2. The Ld. Authorized Representative (A.R) of the assessee has filed the paper books Vol. 1 to 4 including the case law and submitted that once the registration u/s.12AB of the Act has been granted to the assessee, the approval u/s. 80G(5) of the Act is academic. The assessee filed following documents as per paper books:
S.NO Index to Paper Book Vol-1
PARTICULARS
PAGE
PAGE
FROM TO A Order appealed against
1
Order of CIT(E) dated-30-10-2024 rejecting assessee’s application for approval under section 80G
1
10
B
Application seeking approval under section 80G
2
Assessee’s application dated-30-04-2024 in Form 10AB to CIT(E) seeking approval under section 80G(5)(vi)
11
20
3
List of documents submitted by the assessee to CIT(E) in the course of 80G proceedings
21
22
Centre for Urbanisation Building and Environment
:- 3 -:
C
Basic documents
4
Tamil Nadu Government Notification G.O.MS.NO.79, dated 30-03-
2017 sanctioning the constitution of CUBE
23
28
5
Memorandum of Association and Rules and Regulation of CUBE
29
47
6
Letters from various Government Bodies sanctioning the grant of Rs.10,00,00,000
48
52
7
Order for registration of CUBE under section 12AB(1)(b) r.w.s.12A)1)(ac)(iii) dated 25-07-2023 and valid for the period AY-
2021-22 to AY-2025-26. 53
57
8
Board of Governors of CUBE
58
59
9
Details of the Grant of Rs.10 Crores received by CUBE from Tamil
Nadu Government
60
60
D
Assessee’s Financial statements ,ITR and Form 9A
10
Audited Financial statements for the 3years -AY-2021-22, AY-2022-
23, AY-2023-24
61
102
11
Memo of Income for AY-2023-24
103
104
12
Form 9A filed for AY-2023-24
105
106
13
ITR Copy for AY-2023-24
107
155
14
Calculation of surplus made by the assessee in AY-2023-24
156
158
E
Scrutiny assessment proceedings for AY-2023-24
15
Notice under section 143(2) dated-19-06-2024
159
161
16
Notice under section 142(1) dated-18-10-2024
162
165
17
Show Cause Notice (SCN) dated-2-03-2025
166
169
18
Reply to SCN dated-14-03-2025
170
206
19
Scrutiny assessment order under section 143(3) dated 27-03-2025 for AY-2023-24
207
213
F
Scrutiny Assessment for AY-2019-20
20
Scrutiny Assessment Order dated 24-09-2021 for AY-2019-20
214
222
G
Assessee’s projects and Activities
21
Project wise activities carried on by CUBE in AY-2023-24
223
227
22
Detailed description of Top 7 Projects executed by CUBE in AY-2023-
24
228
229
23
Copies of Invoices raised by CUBE for work done
230
252
Centre for Urbanisation Building and Environment
:- 4 -:
Index to Paper Book Vol-2
S.
NO.
PARTICULARS
PAGE
PAGE
A Case Laws
From TO 1
Delhi
High
Court
–
India
Trade
Promotion
Organization
(2015) taxmann.com 404 (Delhi) – W.P (C) No. 1872 of 2013
1
29
2
Delhi
High
Court
–
India
Trade
Promotion
Organization
(2023) taxmann.com 490 (Delhi) – IT Appeal Nos. 3, 4 & 5 of 2022
30
32
3
Supreme
Court
–
India
Trade
Promotion
Organization
(2023) taxmann.com 491 (SC) – SLP (Civil) Diary No. 12361 of 2023
33
34
4
Supreme
Court
–
India
Trade
Promotion
Organization
(2024) taxmann.com 6 (SC) – Review Petition (Civil) Diary No. 5686 of 2024
35
36
5
Supreme Court – Ahmedabad Urban development Authority (2022) 143
taxmann.com 278(SC)
37
144
B
Tamil Nadu Non Trading companies Act 1972
6
Bare Act
145
148
Copy of certificate of registration
149
149
C
Tamil Nadu Societies Registration Act 1975 and relevant Rules
7
Bare Act attached separately
Index to Paper Book Vol-3
S.NO PARTICULARS
PAGE
PAGE
FROM TO Further details of the activities of CUBE
1
Details of policy formulations for Tamil Nadu State undertaken by CUBE
1
1
2
Details of R&D projects undertaken by CUBE
2
2
3
Details of Capacity Building and Training Programs Conducted by CUBE
3
4
4
Invoices related to the policy formulation activity
5
7
5
Invoices related to capacity-building and training activity
8
20
6
Extract from CUBE’s report presented to TNUIFSL (Tamil Nadu Urban
Infrastructure And Financial Services Limited) on Preparation of training needs assessment for capacity building and training program for various
Urban Local Bodies in Tamil Nadu
21
46
7
Extract from Vision Tamil Nadu 2023- Theme 6 - Strategic Plan for Infrastructure Development in Tamil Nadu
47
57
CBDT Circular, Memorandum etc.
Centre for Urbanisation Building and Environment
:- 5 -:
Index to Paper Book Vol-4
S.No.
PARTICULARS
PAGE
PAGE
From To 1
Extract from Memorandum to Finance Bill 2012
1
1
2
Extract from Memorandum to Finance Bill 2024
2
3
3
Form 9A filed for AY 2021-22
4
5
4
Form 9A filed for AY 2022-23
6
7
5
History of orders passed for registration u/s. 12AA/12AB
8
8
6
History of orders passed for Approval u/s. 80G
9
9
CASE LAWS
Supreme Court decision in P.A. Inamdar & Ors vs. State Of Maharashtra & Ors dated 12 August, 2005 – Appeal (Civil) 5041 of 2005 10 58 2 ITAT Bangalore Bench decision in Anugraha Education Trust [2025] 173 taxmann.com 852 (Bangalore-Trib) 59 66 Index S.No. List of earlier registrations under Section 12AA/12AB and approvals u/s. 80G Page Page From To 1. Registration u/s. 12AA dated 28.03.2018 1 2 2. Provisional Registration u/s. 12A(1)(ac)(vi) read with sec 12AB(1)(c) dated 27.05.2021 valid for 3 AYs-AY 21-22 to AY 23-24 3 5 3. Regular Registration u/s. 12A(1)(ac)(iii) read with Sec 12AB(10(b) dated 25.07.2023 and valid for 5 years 6 10 8 Sample list of institutions approved u/s 10(23C)(iv) as taken from the website of Income Tax Department 58 62 9 CBDT Circular NO. 11 of 2008 dated 19-12-2008 63 64 10 Memorandum explaining the provisions of the Finance Bill 2008 65 67
Case Laws
11
Gujarat High Court - Hiralal Bhagwati – [2000] 246 ITR 188 (GUJ.)
68
73
12
Supreme Court - Surat City Gymkhana [2008] 170 Taxman 612 (SC)
74
75
13
Gujarat High Court - N.N. Desai Charitable Trust - [2002] 123 Taxman 866
(Gujarat)
76
82
14
ITAT Lucknow - Shiv Raj Sharma Shiksha Samiti Bilaspur - ITA
No.78/LKW/2018 – order dated 16-5-2019
83
87
15
Supreme Court decision in Shri Ramtanu Co-Operative Housing vs State of Maharashtra – dated 5-8-1970 (Refer internal Page 7 and 8 – which was cited in AUDA)
88
97
16
Gujarat High Court - Orpat Charitable Trust - [2002] 121 Taxman 451
(Gujarat)
98
100
17
ITAT Mumbai Bench – ITA no 830/Mum/2025 – Global Chamber of Saraswat Entrepreneurs – Order dated 3-4-2025
101
103
Centre for Urbanisation Building and Environment
:- 6 -:
from AY 2021-22 to AY 2025-26
4. Provisional Approval u/s. 80G(5)(iv) dated 27.05.2021
valid for 3 years from AY 2021-22 to AY 2023-24
11
12
5. Provisional Approval u/s. 80G(5)(iv) dated 11.08.2023
valid for 3 years from AY 2024-25 to AY 2026-27
13
14
4. The Ld. counsel further submitted that the Ld. CIT(E) failed to appreciate the points referred at Sr. No.4 to 15 of the grounds of appeal raised by the assessee. The Ld. Counsel further submitted that the old registration granted has been expired in the month of March,
2025 and assessee has again applied in March, 2025 itself for the fresh registration u/s 12A of the Act. Therefore, he requested that if a chance is given to the assessee, and undertook that the assessee will be able to prove that the activity of the assessee trust is not in commercial in nature and engaged in the charitable activity. He further prayed that the present application may remand back to Ld. CIT(E) to relook along with the fresh application filed seeking registration u/s.
12A of the Act.
5. On the other hand, the Ld. DR relied on the order of the Ld.CIT(E) and noted that the activities are commercial in nature as observed by the Ld. CIT(E) and therefore, the approval u/s.
80G(5) should not be granted to the assessee.
Centre for Urbanisation Building and Environment
:- 7 -:
Considering the rival submissions, we note that the Ld. CIT(E) provided hearings to the assessee on 20.06.2024, 21.10.2024, 23.10.2024 and 29.10.2024 and assessee has filed requisite details as called by the Ld. CIT(E). However, we find that within 10 days all exercise has been done by the Ld. CIT(E). Therefore, he requested that if a chance is given to the assessee, and undertook that the assessee will be able to prove that the activity of the assessee trust is not in commercial in nature and engaged in the charitable activity. Considering the facts of the case and in the interest of justice, we remit the issue back to the file of Ld. CIT(E) for fresh consideration and decision as per law along with the application in Form 10AB seeking registration u/s 12A of the Act which has been filed in March, 2025. The Ld. CIT(E) is directed to give a reasonable opportunity of being heard to the assessee and assessee is directed to produce the necessary documents for substantiating its case and not to seek unnecessary adjournment for early disposal of the case. In case of failure, the leniency shall not be granted to the assessee. 7. We also observe that the Ld. CIT(E) while disposing of the present application has noted in para 4.0 as under: Centre for Urbanisation Building and Environment
:- 8 -:
“Under the facts and circumstances of the case, its application dated 30.05.2024 filed in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Income Tax Act, 1961, seeking approval u/s. 80G is not maintainable for the reasons stated in para 3.1 to 3.3 of this order and hence the application is rejected.”
Having gone through the para 4 of the Ld. CIT(E) order, we are of considered view that the application filed by the assessee in Form
No.10AB either ‘not maintainable’ or liable to be ‘rejected’. Both the terminology cannot be used therein by the Ld. CIT(E) as the same connotes different situations.
8. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 06th day of June, 2025 at Chennai. (एस. आर. रघुनाथा)
(S.R. Raghunatha)
लेखा
लेखा
लेखा
लेखा सदय
सदय
सदय
सदय /Accountant Member
(मनु कुमार िग र)
(Manu Kumar Giri)
ाियक सद! / Judicial Member
चेनई/Chennai, दनांक/Dated: 06th June, 2025. EDN/-
आदेश क ितिल प अ े षत/Copy to:
1. अपीलाथ/Appellant
2. थ/Respondent
3. आयकर आयु/CIT, Chennai
4. िवभागीय ितिनिध/DR
5. गाड फाईल/GF