SRAVANTI ASSOCIATION FOR RURAL AND TRIBAL DEVELOPMENT,RAJAHMUNDRY vs. INCOME TAX OFFICER ( EXEMPTION WARD), RAJAHMUNDRY

The assessee trust has assailed the impugned order on the following grounds of appeal:

Succinctly stated, the assessee trust was granted provisional registration under Section 80G(5) of the Act, vide order dated 31.12.2021 for the period 31.12.2021 to A.Y. 2024-25. Subsequently, the assessee trust applied for permanent registration u/s 80G of the Act in Form No. 10AB on 18.07.2024.

The CIT(Exemption), Hyderabad issued notices dated 10.10.2024 and 19.12.2024 seeking details. In compliance, the assessee trust responded vide its part reply dated 28.10.2024 furnished the documents/information called for.

However, the CIT(Exemption), Hyderabad, vide the impugned order dated 24.01.2025 in “Form 10AD”, rejected the application for registration filed by the assessee trust. The CIT(Exemption), though observed in his order that the activities carried out by the assessee trust were not commensurate with the activities as per objectives of the registered deed of the trust, and hence, were violative of the provisions of Section 80G of the Act, but there is no whisper in his order about any such activity of the assessee trust which was not commensurate with its objects.

We have heard the Ld. Authorized Representatives for both parties, perused the orders of the lower authorities and the material available on record.

We have thoughtfully considered the order passed by the CIT(Exemption) and are of the view that the impugned order is a non- speaking order. The CIT(Exemption) has not brought on record any finding or material analysis to substantiate how and in what manner the activities of the trust were not in accordance with the stated objectives. We are of a firm conviction that the rejection by the CIT(Exemption) of the application filed by the assessee trust for registration u/s 80G without passing a reasoned order violates the principles of natural justice. It will be apposite to observe, that non- speaking, cryptic, and mechanical orders passed by quasi-judicial authorities are not sustainable in law. The CIT(Exemption), while disposing off the application filed by the assessee trust for permanent registration under Section 80G of the Act was expected to provide a reasoned order and specific findings after considering the material on record.

In view of the above, the impugned order dated 24.01.2025 is hereby set aside, and the matter is restored to the file of the CIT(Exemption), Hyderabad with a direction to pass a fresh speaking and reasoned order in accordance with law. Needless to say, the assessee trust in the course of the set aside proceedings shall be afforded a reasonable opportunity of being heard and remain at liberty to submit any further documents or explanations as may be required.

In the result, the appeal filed by the assessee trust is allowed for statistical purposes in terms of our aforesaid observations.