IKIGAI KEN FOUNDATION,HYDERABAD vs. CIT (EXEMPTION), HYDERABAD

प्रतत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M.
The present appeal filed by the assessee trust is directed against the order passed by the Commissioner of Income-Tax (Exemption), [for short “CIT (Exemptions)”], Hyderabad, dated 22.11.2024 rejecting the application filed by the assessee trust in “Form No. 10AB” for grant of 2

registration U/s 80G of the Income Tax Act, 1961 (hereinafter referred to as "Act").
2. The assessee trust has assailed the impugned order on the following grounds of appeal before us:
“1. The order of the Commissioner of Income Tax (Exemption), Hyderabad ('CIT(E)') rejecting the approval u/s 80G(5) of the Income-tax Act, 1961 ('Act'), is opposed to law and facts of the case.
2. The CIT(E) erred in rejecting the application for registration u/s 80G(5) of the Act for the incorrect reason that no substantial charitable activities are carried on by the Appellant.
3. The order of the CIT(E) is passed in violation of the principles of natural justice, and without considering the materials placed on record.
4. The Appellant craves for leave to add to, delete from or amend the grounds of appeal.”

including, viz. (i). cash flow statement/financial statements reflecting its objectives; (ii). copies of the latest 3 months GST returns; (iii). list of donors in respect of its 80G claim; and (iv) evidence of having incurred expenditure in furtherance of its objectives. It was clarified that in case the assessee trust failed to comply with the notice, the application would be disposed of based on the material available on record.
5. In compliance, the assessee trust filed the details as were called for by the CIT(Exemption). However, the CIT(Exemption), after perusing the submissions, summarily observed that no charitable activities were being carried out by the assessee trust.
Accordingly, the CIT(Exemption), based on his aforesaid observations, rejected the application filed by the assessee trust for registration u/s 80G of the Act.
6. Aggrieved, the assessee trust has assailed before us the order passed by the CIT(Exemption) rejecting its application for registration u/s 80G of the Act.
7. We have heard the Ld. Authorized Representatives of both parties, perused the order of the CIT(Exemption) and the material available on record.
8. We have perused the order passed by the CIT(Exemptions) rejecting the assessee trust’s explanation for registration u/s 80G of the 4

Act, and find that the same is non-speaking and lacks specific findings or objective analysis of the documents that were submitted by the assessee trust. Although the CIT(Exemption) has observed that a perusal of the submissions filed before him revealed that no substantial charitable activities were being carried out by the assessee trust, but, we find that there is no whisper in his order regarding the reason for so concluding. The CIT(Exemptions) had neither elaborated on the deficiency in the documents submitted nor had recorded any clear finding regarding the non-genuineness of the activities of the assessee trust or any failure on its part to meet the conditions contemplated u/s 80G of the Act.
9. We are unable to persuade ourselves to concur with the manner in which the CIT(Exemptions) had disposed of the application filed by the assessee trust for registration u/s 80G of the Act. It is trite law that the administration and quasi-judicial authorities are expected to pass reasoned orders, especially when the matter involves the registration of a charitable trust under the Act. We are afraid that the impugned order passed by the CIT(Exemptions), declining the application filed by the assessee trust for registration u/s 80G of the Act, seriously falls short of the aforesaid statutory requirements.
10. We, thus, considering the aforesaid facts, are of a firm conviction that the matter requires reconsideration at the end of CIT(Exemptions).
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Accordingly, in all fairness, the matter is restored to the file of CIT(Exemptions) for fresh adjudication. The CIT(Exemptions) shall in the course of set aside proceedings, afford a reasonable opportunity of being heard to the assessee trust. The CIT(Exemptions) is directed to examine the documents submitted by the assessee trust, in accordance with law, and pass a speaking order disposing of it’s application for registration u/s 80G of the Act. Accordingly, the matter is restored to the file of CIT(Exemptions) in terms of our aforesaid observations.
11. Resultantly, the appeal of the assessee trust is allowed for statistical purposes in terms of our aforesaid observations
Order pronounced in the Open Court on 06th August, 2025. (श्री मिुसूदन सावडिया)
(MADHUSUDAN SAWDIA)
लेखा सदस्य/ACCOUNTANT MEMBER (श्री रवीश सूद)
(RAVISH SOOD)
न्यायिक सदस्य/JUDICIAL MEMBER Hyderabad, dated 06.08.2025. #TYNM/sps
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आदेशकी प्रतततलतप अग्रेतषत/ Copy of the order forwarded to:-

आदेशािुसार / BY ORDER

Sr. Private Secretary
ITAT, Hyderabad