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Facts
The assessee, Prof. V.S. Raju Family Charitable Trust, applied for renewal of registration under Section 12AB of the Income Tax Act. The CIT (Exemptions) rejected this application, citing a lack of verifiable documentary evidence for charitable activities. The assessee argued that all necessary documents were submitted.
Held
The Tribunal observed that the CIT (Exemptions) rejected the application without properly considering the submitted records and without identifying specific defects. Consequently, the Tribunal set aside the CIT (Exemptions)'s order and remanded the matter back for fresh consideration after granting the assessee an appropriate opportunity of hearing.
Key Issues
Whether the CIT (Exemptions) was justified in rejecting the renewal of registration application under Section 12AB without adequately reviewing the evidence provided by the assessee.
Sections Cited
12AB
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Income Tax Appellate Tribunal, Hyderabad ‘DB-B‘ Bench, Hyderabad
Before: Shri Vijay Pal Rao, Vice-Shri Madhusudan Sawdia
Per Vijay Pal Rao, Vice President
This appeal by the assessee is directed against the order dated 31/03/2025 of the learned CIT (E), Hyderabad whereby the application of the assessee for renewal of registration u/s 12AB of the Act was rejected.
The learned AR of the assessee has submitted that the assessee has filed the application in Form 10AB seeking renewal
Page 1 of 4 of registration u/s 12AB which was earlier granted on 7/6/2024 valid from A.Y 2021-22 to 2025-26. Therefore, the assessee has made this application on Form 10AB on 20/09/2024 for renewal of the registration u/s 12AB of the Act. He has further submitted that the assessee has filed all the relevant record and documents before the CIT (Exemptions). He has referred to the reply filed by the ass dated 6/12/2024 placed at page Nos.40 to 45 of the paper book and also all the relevant records including the financial statements at page No.46 to 89 of the paper book. Thus, the learned AR has submitted that when the assessee has produced all the relevant record and evidence to show charitable activity carried out by the assessee, then the rejection of the application by the learned CIT (Exemptions) on the ground that no charitable activity is found contrary to the record and facts.
On the other hand, the learned DR has relied upon the impugned order of the learned CIT (Exemptions).
We have considered the rival contentions as well as the relevant material available on record. The learned CIT (Exemptions) has rejected the application of the assessee by giving the reasons in para 3 of the impugned order as under: “3. On perusal of the submissions made by the assessee, it is observed that the charitable activities are not justified with verifiable documentary evidence which is in violation of the provisions of the section 12AB of the IT Act, 1961. The assessee obtained regular registration u/s Page 2 of 4
12AB in form 10AD dated 07.06.2024 valid from AY 2021-22 to AY 2025-26. The assessee further made application in form 10AB on 20.09.2024 for renewal of registration u/s 12AB. In view of the above, the present application in form 10AB for renewal registration u/s 12AB is herewith rejected.”
Thus, the reasons assigned by the learned CIT (Exemptions) are that the charitable activities are not justified with verifiable documents, whereas we find that the assessee filed all the relevant evidence including the financial statements, bank account statements and details of the charitable activities carried out by the assessee. The learned CIT (Exemptions) has not pointed out any defect in those documents as well as the details filed by the assessee. Accordingly, in the facts and circumstances of the case, the impugned order passed by the learned CIT (Exemptions) is found to be without considering the relevant record filed by the assessee. Hence, the same is set aside and the matter is remanded to the record of the learned CIT (Exemptions) for reconsideration of the application of the assessee for renewal of registration u/s 12AB of the Act after considering the relevant records. Needless to say, the assessee shall be given an appropriate opportunity of hearing to the assessee before passing the fresh order.
In the result, appeal filed by the assessee is allowed for statistical purposes.