MAATI FOUNDATION,RANGA REDDY vs. COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD

Facts of the case, in brief, are that the assessee is a trust under and name and style of MAATI Foundation formed on 07.07.2023 and registered with Registrar of Societies. The objectives of the Society are that to promote the movement focused on waste prevention and reduction with global impact, support recycling and waste minimization approaches to ensure products are reused, repaired or recycled, redesign industrial systems into circular models based on Nature’s strategies, create jobs through waste-based business opportunities, implement waste reduction, recycling and environmental education programs to support sustainable communities, enhance public participation in material reduction and recovery programs and undertake all necessary activities to achieve these objects.

During the course of hearing, Learned Counsel for the Assessee submitted that the assessee society has been formed with an avowed object to protect and preserve the environment while minimizing the wastage by reusing it 4 ITA.Nos.1294 & 1295/Hyd./2024 so that the future generations shall enjoy a clean environment and for this avowed object, the assessee society involving public participation too by conducting various programmes. The assessee-society is striving to achieve it’s objects. However, the learned CIT(E) noted that the activities of the assessee society are of “commercial” nature. He submitted that the order of the learned CIT(E) is not based on the factual matrix of the case and, therefore, not sustainable in the eye of law. He pleaded that assessee society shall be encouraged in the interest of nature as it is working on restoration of ecological balance. He accordingly submitted that the learned CIT(E) be directed to grant registration u/sec.12AB and approval u/sec.80G of the Act.

The Learned DR on the other hand strongly relied on the orders of the learned CIT(E) in rejecting the application of the assessee-society for registration u/sec.12AB and denial of approval u/sec.80G of the Act. He submitted that that the orders of the learned CIT(E) be confirmed as the assessee society failed to substantiate it’s 5 ITA.Nos.1294 & 1295/Hyd./2024 case by filing requisite documents as called for by the learned CIT(E).

We have heard the rival submissions of both the parties, perused the objects of the trust and the orders of the learned CIT(E) in the instant appeals. We find that the learned CIT(E) had passed cryptic orders without giving cogent reasons while rejecting the application for registration u/sec.12AB and denial of approval u/sec.80G of the Act. It is an admitted fact that the assessee-society is educating and involving public participation in waste management so that by collective participation of the public at large, the ecological balance could be restored, which is an avowed object to pass-on a clean environment for the future generations. We all know well that our environment is badly effected due to vast technological development of the society in all sectors and thereby, the public life has become at ease in all walks of life and equally we are damaging/spoiling the mother earth by dumping the waste products into the earth. We, therefore, note that it is the fundamental duty of the every citizen of this great country 6 ITA.Nos.1294 & 1295/Hyd./2024 as enshrined under Article 51A of the Constitution of India to protect and improve the natural environment including various lakes, rivers and wild life and other living creatures living on the mother earth. The assessee-society is discharging it’s fundamental duty as a citizen of this country. Therefore, this kind of activities taken-up by a society like the one before us, shall be encouraged in true letter and spirit. We find that the learned CIT(E) did not doubt the genuineness of the activities of the assessee society. We, therefore, find no merit in the orders of the learned CIT(E) by passing a cryptic order while rejecting the application for registration u/sec.12AB and denying approval u/sec.80G of the Act. We accordingly, in the interest of justice and to maintain ecological balance for betterment of our future generations at large which is the primary duty of every human being living on the earth, direct the learned CIT(E) to grant registration u/sec.12AB and approval u/sec.80G of the Act. Accordingly, the grounds raised by the assessee in these twin appeals are allowed.