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Facts
The assessee filed an application for approval of registration under Section 80G(5) of the Income Tax Act, which was rejected by the CIT (Exemptions) on the grounds that the trust was not carrying out substantial charitable activities. The assessee contended that they had provided sufficient documentation and that their past compliance history was not considered.
Held
The Tribunal noted that the CIT (Exemptions) had not considered the relevant records and evidence filed by the assessee before passing the impugned order. Therefore, the matter was set aside to the CIT (Exemptions) for reconsideration.
Key Issues
Whether the CIT (Exemptions) erred in rejecting the application for registration under Section 80G without considering the documentary evidence and past compliance history of the assessee.
Sections Cited
80G, 12A, 80G(5)
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Income Tax Appellate Tribunal, Hyderabad ‘DB-B‘ Bench, Hyderabad
Before: Shri Vijay Pal Rao, Vice-Shri Manjunatha, G.
(िनधा�रण वष�/Assessment Year: 2024-25) Red Rope Movement Vs. CIT (Exemptions) Secunderabad Hyderabad PAN:AAABR4096D (Appellant) (Respondent) िनधा��रती �ारा/Assessee by: Ms.Chrysolyte Sanamanda and CA Velan Sailas राज� व �ारा/Revenue by:: Shri Narender Kumar Naik, CIT (DR) सुनवाई की तारीख/Date of hearing: 10/07/2025 घोषणा की तारीख/Pronouncement: 16/07/2025 आदेश/ORDER
Per Vijay Pal Rao, Vice President
This appeal filed by the assessee is directed against the order dated 22/11/2024 of the learned CIT (Exemptions), for the 2024-25 whereby the application of the assessee for approval u/s 80G(5) of the Act was rejected.
ITA 187 of 2025 Red Rope Movement Secunderabad
There is a delay of 5 days in filing the present appeal. The assessee has filed an application for condonation of delay which is duly supported by an affidavit.
We have heard the learned AR as well as the learned DR on the condonation of delay and carefully perused the contents of the assessee. The assessee has explained the cause of the delay that due to some internal issues, the key personnel who has to take steps for filing the appeal were not available during the relevant period and therefore, there is a delay of 5 days in preparing the necessary document and filing the appeal. Having considered the delay of 5 days and reasons explained by the assessee, we are satisfied that the assessee was having a reasonable cause for the delay of 5 days in filing the present appeal. Accordingly, we condone the delay of 5 days in filing the present appeal.
The assessee has raised the following grounds of appeal:
ITA 187 of 2025 Red Rope Movement Secunderabad
The learned AR of the assessee has submitted that the CIT (Exemptions) has rejected the application on the ground that no substantial charitable activities are being carried out by the assessee Trust, whereas the assessee has filed all the relevant
ITA 187 of 2025 Red Rope Movement Secunderabad details and documents in response to the notices issued by the CIT (Exemptions). He has referred to the reply filed by the assessee to 3 notices issued by the CIT (Exemptions) dated 10/6/2024, 21/8/2024 and 9/10/2024. The copies of the acknowledgement of the replies filed by the assessee were also placed on record. Thus, the learned AR has submitted that the CIT (Exemptions) has rejected the application of the assessee without considering the relevant record to show that the assessee has carried out the charitable activities. Thus, she has pleaded that the impugned order of the CIT (Exemptions) be set aside and approval u/s 80G be granted to the assessee.
On the other hand, the learned DR has submitted that the CIT (Exemptions) has given a finding of the fact that from the reply filed by the assessee, no substantial charitable activities are being carried out by the assessee is evident. He has relied upon the impugned order of the CIT (Exemptions).
We have considered the rival contentions as well as the relevant material available on record. At the outset, we note that the CIT (Exemptions) has rejected the application of the assessee by giving reasons in para 3 of the impugned order as under: “3. The assessee submitted his response to the above notice and on perusal of the submissions of the assessee, it is observed that no substantial charitable activities are being carried out by the assessee trust, which is in violation of provisions of section 12A and 80G of the IT Act, 1961. In light of the above facts, the present application in form 10AB for registration u/s 80G is herewith rejected.
ITA 187 of 2025 Red Rope Movement Secunderabad
We have taken note of the fact that the assessee has responded to all the 3 notices issued by the CIT (Exemptions) and filed the relevant record including the bank a/c statement, audited financial statement, list of donors etc. to show that the assessee has carried out charitable activities. However, the CIT (Exemptions) has not even given any reference to the details filed by the assessee while passing the impugned order. Accordingly, in the facts and circumstances of the impugned order of the CIT (Exemptions), we set aside the matter to the record of the CIT (Exemptions) for reconsideration of the application of the assessee for approval u/s 80G(5) of the Act after considering relevant record and evidence filed by the assessee as well as affording appropriate opportunity of hearing to the assessee. We order accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes.