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Facts
The assessee, Sri Ramanarayanam Kshetra Anna Prasadam Trust, filed an e-application in Form No. 10AB seeking registration under Section 80G of the Income Tax Act. The Ld. CIT(E) rejected the application, citing that no substantial charitable activities were being carried out by the trust.
Held
The tribunal found that the Ld. CIT(E)'s rejection order lacked proper reasoning and failed to specify which objectives were not charitable, despite the trust's activities being charitable in nature and it already holding registration under Section 12A. The tribunal directed the Ld. CIT(E) to grant the Section 80G registration.
Key Issues
Whether the Ld. CIT(E) was justified in rejecting the application for Section 80G registration without providing sufficient reasons or a speaking order, especially when the trust's activities were charitable and it was already registered under Section 12A.
Sections Cited
80G, 80G(5)(i), 10AB, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI VEERAVALLI DURGA RAO, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश /O R D E R
PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER:
This appeal is filed by the assessee against rejection order by the Learned Commissioner of Income Tax (Exemption), Hyderabad [hereinafter in short “Ld.CIT(E)”] vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1071059010(1) dated 10.12.2024.
I.T.A.No.10/VIZ/2025 Sri Ramanarayanam Kshetra Anna Prasadam Trust 2. Briefly stated facts of the case are, assessee has fled an e-application in Form No. 10AB seeking registration under section 80G of the Income-Tax act, 1961 (in short “Act”). Ld.CIT(E) issued Notice to the assessee in respect of proceedings under section 80G(5)(i) 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 14.11.2024 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 Ld.CIT(E). On considering the submissions of the assessee, Ld. CIT(A) rejected the application and issued Form No.10AD dated 10.12.2024.
3. Aggrieved by the rejection order assessee filed an appeal before us by raising following grounds of appeal: -
1. The Learned Commissioner of Income Tax (Exemptions) ought not to have rejected the application under Form 10AB for renewal of registration u/s 80G of the Act in the facts and circumstances of the case.
2. The reason given by the Ld. CIT(E) that the activities are not substantial is erroneous as the appellant has undertaken substantial charitable activities as per the objects of the trust.
The Ld, CIT(E)'s conclusions regarding the assessee are erroneous and in complete contradiction to the facts and evidence placed before him, which facts and evidence the Ld.CIT(E) does not dispute.
For these and any other grounds that may be urged at the time of hearing the assessee prays for the Hon'ble Bench to direct the Ld. CIT(E) to grant renewal of registration u/s 80G to the assessee trust.
5. The appellant craves leave to add, alter, amend or delete any of the grounds.”
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I.T.A.No.10/VIZ/2025 Sri Ramanarayanam Kshetra Anna Prasadam Trust 4. The only issue contested by the assessee is rejection of the Registration u/s 80G, by the Ld.CIT(E). On this issue, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that assessee has filed Form 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. On perusal of the submission made by the assessee, it is observed 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 section 80G of the IT Act, 1961. In view of the above, the present application in form 10AB for registration u/s. 80G is herewith rejected.”
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.
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I.T.A.No.10/VIZ/2025 Sri Ramanarayanam Kshetra Anna Prasadam Trust The Ld.CIT(E) has casually observed without stating which of the objects are not charitable in nature. Further, the Ld.AR also submitted that the assessee was also granted registration under section 12A of the Act, w.e.f. 01.04.2024. We therefore have no hesitation directing the Ld. CIT(E) to grant Registration under section 80G of the Act to the assessee. Accordingly, appealof the assessee is allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 13th May, 2025.
Sd/- Sd/- (श्री िीरिल्ली दुर्ााराि) (एस बालाकृष्णन) (VEERAVALLI DURGA RAO) (S. BALAKRISHNAN) न्याधयक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER Dated: 13.05.2025 Giridhar, Sr.PS आदेशकीप्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to :- निर्धाररती/ The Assessee 1. : Sri Ramanarayanam Kshetra Anna Prasadam Trust Srimadramyana Prarangam, Korukonda Road Sarika Village, Vizianagaram – 535004 Andhra Pradesh 2. रधजस्व/ The Revenue : CIT(Exemption) Aayakar Bhavan Basheerbagh - 500004 Telangana 3. The Principal Commissioner of Income Tax 4. नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
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