APPALA PARADESI CHARITABLE TRUST,VISAKHAPATNAM vs. INCOME TAX OFFICER (EXEMPTION), VISAKHAPATNAM
Facts
The assessee, Appala Paradesi Charitable Trust, challenged the rejection of its application for Section 80G registration by the CIT(E). The CIT(E) had dismissed the application without specifying which activities were not charitable, despite the assessee submitting evidence of its charitable work.
Held
The ITAT observed that the assessee had already been granted registration under Section 12A of the Act and found that the CIT(E) had not provided any specific reasons for concluding that the assessee's activities were not charitable. Consequently, the ITAT set aside the CIT(E)'s order and remanded the matter for reconsideration and grant of Section 80G registration in light of the submitted material.
Key Issues
Whether the CIT(E) was justified in rejecting an application for Section 80G registration without concrete reasons, especially when Section 12A registration had already been granted to the assessee.
Sections Cited
80G, 12A, 10, 10(23C)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI K.NARASIMHA CHARY & SHRI BALAKRISHNAN S
आयकर अपीलीय अधिकरण, विशाखापटणम पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER & SHRI BALAKRISHNAN S, ACCOUNTANT MEMBER आ.अपी.सं / ITA No.03/Viz/2025 (निर्धारण वर्ा / Assessment Year: -NA-) Appala Paradesi Charitable Trust Vs. Income Tax Officer Visakhapatnam (Exemption) [PAN : AIDPG1046K] Visakhapatnam अपीलधर्थी / Appellant प्रत्यर्थी / Respondent निर्धाररती द्वधरध/Assessee by: Shri C.Subrahmanyam, AR रधजस्व द्वधरध/Revenue by: Dr.Satyasai Rath,CIT-DR
सुिवधई की तधरीख/Date of hearing: 03/03/2025 घोर्णध की तधरीख/Pronouncement on: 07/03/2025 आदेश / ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 11/12/2024 passed by the learned Commissioner of Income Tax (Exemption), (“learned CIT(E)”), Hyderabad in the case of Appala Paradesi Charitable Trust (“the assessee”), assessee preferred this appeal. 2. At the outset, learned AR submitted that the learned CIT (E) rejected the application of the assessee in form No.10AB seeking registration under section 80G of the Income Tax Act, 1961 (for short “the Act”) stating 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 sec. 80G of the Act, without specifying any details thereof. The learned AR brought to our notice
the ITR acknowledgements for the assessment years 2022-23, 2023-24 and 2024-25, independent audit report for the assessment year 2024-25, computation of income along with the financials and form 10AB for the assessment years 2022-23 and 2023-24, copy of Trust Deed dated 12/12/2018 and the photographs evidencing the activities of the assessee. Without pointing out which activity of the assessee does not fall in the category of charitable activities, the learned CIT(A) is not justified in rejecting the application for registration in section 80G of the Act.
Learned DR placing to heavy reliance on the impugned order and submitted that the learned CIT(E) took a plausible view on a perusal of the submissions made by the assessee that the assessee did not do any considerable activity of charitable in nature.
We have gone through the record in the light of the submissions made on either side. It is an undisputed fact that by order dated 13/5/2022, registration under section 12A of the Act was granted under clause (23C) of section 10 of the Act, subject to the condition that if it is subsequently found that the activities of the assessee are not genuine or if they are not carried out in accordance with all or any of the conditions subject to which such registration was granted. There is no complaint against the assessee for violating any of the conditions mentioned in this registration.
The ITR acknowledgements for the assessment years 2022-23, 2023-24 and 2024-25, independent audit report for the assessment year 2024-25, computation of income along with the financials and form 10AB for the assessment years 2022-23 and 2023-24, copy of Trust Deed dated 12/12/2018 and the photographs evidencing the activities of the assessee establish that the assessee did considerable activities during the year. When these things are viewed in the light of the activities mentioned in the trust deed dated 12/12/2018 and the photographs showing the welfare measures taken for production and conservation of the cows show that these activities are charitable in nature. Ld. CIT (E) did not specify any activity that does not fall in the category of charitable activity.
In the circumstances, we are of the considered opinion that it is a fit case to set aside the impugned order and restore the issue to the file of the learned CIT(E) with a direction to reconsider the issue in the light of the material and grant registration under section 80G of the act. Grounds are answered accordingly.
In the result, appeal of the assessee is allowed.
Order pronounced in the Open Court on 7th March, 2025.
Sd/- Sd/- (BALAKRISHNAN S.) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 07/03/2025 L.Rama, SPS Copy forwarded to: 1. Shri Appala Paradesi Charitable Trust, D.No.45-37-21, Jagannathapuram, Akkayyapalem, Visakhapatnam 2. The Income Tax Officer (Exemptions), Visakhapatnam 3. The Pr.CIT, Visakhapatnam 4. The DR, ITAT, Visakhapatnam 5. GUARD File
