ROTARY VIZIANAGARAM CENTRAL KAILASH BHOOMI SERVICE SOCIETY,VIZIANAGARAM vs. INCOME TAX OFFICER (EXEMPTION WARD), VISAKAPATNAM
Facts
The assessee, Rotary Vizianagaram Central Kailash Bhoomi Service Society, filed an e-application in Form No. 10AB for registration under section 80G of the Income-Tax Act. The CIT(E) rejected the application, observing that no substantial charitable activities were being carried out and that the trust's objectives did not fall under a charitable nature, without issuing a speaking order.
Held
The Tribunal found that the CIT(E) rejected the application without providing specific reasons or explaining which objectives were not charitable, despite the assessee already holding registration under section 12A of the Act. After reviewing the trust's objects, the Tribunal concluded that its activities were charitable and directed the CIT(E) to grant registration under section 80G.
Key Issues
Whether the CIT(E) was justified in rejecting the application for 80G registration without a speaking order and proper reasoning, despite the assessee's existing 12A registration.
Sections Cited
Section 80G, Section 80G(5)(i), Section 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI VEERAVALLI DURGA RAO, HONBLE & SHRI S BALAKRISHNAN, HONBLE
आदेश /O R D E R
PER SHRI VEERAVALLI DURGA RAO, JUDICIAL MEMBER: 1. This appeal is filed by the assessee against rejection order by the Learned Commissioner of Income Tax (Exemption), Hyderabad [hereinafter in short
I.T.A.No.112/VIZ/2025 Rotary Vizianagaram Central Kailash Bhoomi Service Society “Ld.CIT(E)”] vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1071165446(1) dated 12.12.2024.
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 27.11.2024 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 12.12.2024.
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 Registration u/s.80G of the Act. 3. Any other ground that may be urged at the time of appeal hearing.”
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I.T.A.No.112/VIZ/2025 Rotary Vizianagaram Central Kailash Bhoomi Service Society 4. The only issue contested by the assessee is rejection of the Registration 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 of the assessee, it is observed that no substantial charitable activities are being carried out by the assessee, which is in violation of the provisions of section 80G of the IT Act. In light of the above facts, 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)
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I.T.A.No.112/VIZ/2025 Rotary Vizianagaram Central Kailash Bhoomi Service Society 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 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/- (एस बालाकृष्णन) (श्री िीरिल्ली दुर्ाा राि) (S. BALAKRISHNAN) (VEERAVALLI DURGA RAO) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated: 13.05.2025 Giridhar, Sr.PS आदेश की प्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to :- 1. निर्धाररती/ The Assessee : Rotary Vizianagaram Central Kailash Bhoomi Service Society D.No. 8-12-4, 2nd Floor, Fathima Plaza Vizianagaram – 535003, Andhra Pradesh 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 नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 4. 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam
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