VIZAG RUNNERS SOCIETY,VISAKHAPATNAM vs. INCOME TAX OFFICER (EXEMPTION WARD), VISAKHAPATNAM
Facts
Vizag Runners Society (assessee) applied for registration under Section 80G of the Income-Tax Act. The Ld. Commissioner of Income Tax (Exemption) rejected the application, citing that no substantial charitable activities were observed, which violated Section 80G provisions.
Held
The Tribunal found the Ld. CIT(E)'s rejection order casual, noting that the assessee's objects were charitable in nature and it already held registration under Section 12A. The Tribunal directed the Ld. CIT(E) to grant Section 80G registration to the assessee, allowing the appeal.
Key Issues
Whether the rejection of the assessee's application for registration under Section 80G by the Commissioner of Income Tax (Exemption) was justified, given that its activities were charitable and it possessed Section 12A registration.
Sections Cited
80G, 80G(5)(1), 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: 1. 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- 25/1071094337(1) dated 11.12.2024.
I.T.A.No.111/VIZ/2025 Vizag Runners Society 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 11.12.2024.
Aggrieved by the rejection order assessee filed an appeal before us by raising following grounds of appeal: -
“1. The order of the learned Commissioner of Income Tax (Exemption), Hyderabad is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Exemption) is not justified in rejecting the application filed by appellant in Form no.10AB for Approval u/s 80G of the Act. 3. 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 by the Ld.CIT(E). On this issue, Ld. Authorised Representative [hereinafter
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I.T.A.No.111/VIZ/2025 Vizag Runners Society “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. The Ld.CIT(E) has casually observed without stating which of the objects are not charitable in nature. Further, registration under section 12A of the Act is also granted to the
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I.T.A.No.111/VIZ/2025 Vizag Runners Society assessee. We therefore have no hesitation directing the Ld. CIT(E) to grant Registration under section 80G of the Act to the assessee. Accordingly, appeal of 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 दुर्ाा राि) (एस बालाकृष्णन) (VEERAVALLI DURGA RAO) (S. BALAKRISHNAN) न्याधयक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER Dated: 13.05.2025 Giridhar, Sr.PS आदेश की प्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to :- 1. निर्धाररती/ The Assessee : Vizag Runners Society D.No. 11-4-4/18 Flat No. 303, East Coast Residency Rockdale Layout, Maharanipeta Visakhapatnam – 530002 2. रधजस्व/ The Revenue : ITO – Exemption Ward Income Tax Office Infinity Tower Shankaramatham Road Santhipuram Visakhapatnam – 530016 Andhra Pradesh 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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