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आदेश /O R D E R
PER V. DURGA RAO, JM:
The captioned appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Exemption), Hyderabad (in short “Ld.CIT(E)”) vide DIN & Order No. ITBA/EXM/F/EXM45/2024-25/1070723748(1) dated 28.11.2024.
Sri Vijaya Durga Seva Samithi 2. Briefly stated facts of the case are that the assessee has filed an e- application in Form No.10AB seeking registration U/s. 80G of the I.T. Act, 1961 (in short “Act”). The Learned CIT (E) issued notice to the assessee on 10.06.2024 in respect of proceedings U/s. 80G(5)(iii) of the Act to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee has submitted some of the details as called for. Subsequently, another notice dated 10.10.2024 was issued to the assessee to submit the full information as per the notices issued. In response, assessee furnished its reply in compliance to the notice issued by the learned CIT(E). On a perusal of the submission of the assessee, learned CIT (E) rejected the application in Form-10AD dated 28.11.2024.
3. Aggrieved by the rejection order, the assessee filed the present appeal before us by raising following grounds of appeal:
The order of the learned Commissioner of Income Tax (Exemption), “1. Hyderabad is contrary to the facts and also the law applicable to the facts of the case.
The learned Commissioner of Income Tax (Exemption) is not justified in rejecting the application filed by appellant in Form no.10AB for Registration u/s 80G of the Act.
Any other ground that may be urged at the time of appeal hearing.”
The only issue contested by the assessee is rejection of the Registration u/s 80G of the Act, by the Ld.CIT(E). On this issue, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that assessee has filed Form
Page No. 2 Sri Vijaya Durga Seva Samithi No. 10AB seeking registration under section 80G of the Act and the same was rejected by the Ld.CIT(E) without any speaking order. Ld.AR also submitted that the activities carried out by the Trust are of charitable in nature and therefore pleaded that rejection order may be cancelled.
Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] relied on the order of the Ld.CIT(E).
We have heard both the sides and perused the material available on record. We observe that Ld.CIT(E) rejected the application of the assessee by observing 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 and the provisional registration granted to the assessee in form 10AC dated 10.03.2022 also stands cancelled.”
On perusal of the order of the Ld.CIT(E), we find that the Ld.CIT(E) has not discussed anything except stating that the objectives of the trust does not fall under the charitable nature and rejected the application. After considering the objects of the Trust cited by Ld AR, we consider as per the objects of the Trust, they are carrying out activities of charitable in nature. The Ld. CIT(E) has casually observed that no substantial activities have been carried out without discussing anything about the details and record filed by the assessee. We have perused the documents submitted by the assessee (page No. 86 to 105
Page No. 3 Sri Vijaya Durga Seva Samithi of the paper book) and we find that the assessee is a Trust which is carrying on its activities according to the objects viz., providing annadanam free of cost, support education of children, marriages of girls from the poor and needy section of society, etc., On further perusal of the details submitted by the assessee, we are unable to understand which activities of the assessee Trust are contrary to the objects of the Trust. In spite of the above, the Ld. CIT (E) has simply rejected the assessee’s application which, in our considered opinion is not correct. Therefore, we are of the opinion that it is a fit case to grant Registration U/s. 80G of the Act. Accordingly, in the facts and circumstances of the case as discussed above, the impugned order of the Ld. CIT(E) is set-aside and we direct the Ld. CIT(E) to grant registration to the assessee U/s.80G of the Act.
In the result, appeal filed by the assessee is allowed.
Order pronounced in the open court on 12th June, 2025.