INDIAN SOCIAL SERVICE,WARANGAL vs. ITO, EXEMPTION WARD-1(4), HYDERABAD

At the outset, learned AR submitted that the learned CIT (E) rejected the application of the assessee in form No. 10AB seeking registration under section 80G of the Income Tax Act, 1961 (for short “the Act”) stating that no substantial activities which are charitable in nature are being carried out by the assessee, which is in violation of the provisions of the sec. 12 AB of the Act, without specifying any details thereof. The learned AR brought to our notice the independent audit report, statement of income and expenditure, receipts and payments along with the Balance Sheet and schedules for the years ended with 31/3/2022, 31/3/2023 and 31/3/2024 along with the annual report of the NGO for the years 2021-22, 2022-23, and 2023-24, evidencing the activities of the assessee. Without pointing out which activity of the assessee does not fall in the category of charitable activities, the learned CIT(A) is not justified in rejecting the application for registration in section 80G of the Act.

Learned DR placing heavy reliance on the impugned order and submitted that the learned CIT(E) took a plausible view on a perusal of the submissions made by the assessee that the assessee did not do any considerable activity of charitable in nature.

We have gone through the record in the light of the submissions made on either side. It is an undisputed fact that by order dated 24/09/2021, registration under section 12AB of the Act was granted under section 12A(1)(ac)(i) of the Act, subject to the condition that if it is subsequently found that the activities of the assessee are not genuine or if they are not carried out in accordance with all or any of the conditions subject to which such the registration was granted, there is no compliance of the assessee while meeting any of the conditions mentioned in this registration, the order is liable to be withdrawn by the prescribed authority.