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Facts
Sri Guru Trust, registered under Section 12A and providing educational services, applied for 80G registration. The CIT(E) rejected the application, stating that the trust was not carrying out charitable activities, without providing specific findings. The assessee contended that its existing 12A registration confirmed its charitable nature.
Held
The Tribunal noted that the assessee's 12A registration already indicated its charitable objects and activities. It remitted the primary appeal (ITA No.91/CTK/2025) back to the CIT(Exemptions) for a fresh consideration of the 80G application, instructing to provide an opportunity for the assessee to be heard and present evidence. The duplicate appeal (ITA No.100/CTK/2025) was dismissed as infructuous.
Key Issues
Whether the CIT(E) was justified in denying 80G registration to a trust already holding 12A registration, without specific findings contradicting its charitable activities.
Sections Cited
Section 80G, Section 80G(5B), Section 80G(5)(iii), Section 12A, Section 12(ac)(i), Section 2(15)
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O R D E R
Per Duvvuru RL Reddy, Vice President:
is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Exemption), Hyderabad dated 11.12.2024 passed for Assessment Year 2025-2026.
First we shall take into consideration the appeal of the assessee in ITA No.91/CTK/2025. The sole ground involved in the present appeal of the assessee is with regard to denial of approval/registration sought by the assessee trust u/s.80G(5B) of the Act.
The assessee trust has filed an application in Form 10B seeking registration u/s.80G of the Act. The ld. CIT(E) rejected the application filed by the assessee u/s.80G of the holding that the assessee is not carrying out any activities which are charitable in nature violating the provisions of Section 80G of the Act.
Ld. Counsel for the assessee submitted that the assessee is a charitable trust registered u/s.12A of the Act since 22.06.2022 and is engaged in providing educational services u/s.2(15) of the Act. The said registration was further renewed for five years under section 12(ac)(i) of the Act on 21.06.2023. Further, the assessee on 11.06.2024 applied for registration under section 80G(5)(iii) before the Commissioner of Income Tax (Exemption), Hyderabad vide Form 10AB vide acknowledgement number 419790920110624 dated 11.06.2024 submitting other documents such as (1) Darpan details (ii) 80G provisional registration certificate (iii) Trust Deed (iv) 12A Certificate (v) Financial Statements for FY 19-20, 20- 21 and 21-22 and activity report. The Ld. CIT(E) rejected the 80G application made by the assessee providing a bald statement bereft of any specific findings 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'. It was submitted by the ld. Counsel for the assessee that once the assessee is registered under section 12A of the Act, the application filed by the assessee vide Form 10AB for approval u/s.80G of the Act deserves to be allowed.
On the other hand, ld. CIT-DR supported the order of the ld.CIT(E) and submitted that the assessee trust was unable to substantiate before the ld. CIT(E) that its activities are charitable in nature. Thus, the ld.CIT- DR prayed that the order passed by the ld. CIT(E) should be upheld.
6. After hearing the submissions of the parties and perusing the material available on record, we find that the assessee has sought registration u/s.80G of the Act, which has been rejected by the ld.CIT(E) on the ground that the assessee trust is not carrying any charitable activities. The assessee has filed voluminous paper book before us in supporting of his submission that the activities of the assessee trust is charitable in nature. It is not in dispute that assessee has been granted registration under section 12A of the I.T. Act, 1961 by the CIT(E), Hyderabad vide Order Dated 11.06.2024 having been satisfied with the objects and activities of the assessee that it is meant for charitable purposes, therefore, different view cannot be taken while refusing the grant of approval under section 80G of the I.T. Act. Considering the totality of the facts and circumstances of the case, we find it fit and proper to remit the issue to the file of the CIT(Exemptions) to consider the application preferred by the assessee seeking approval under Clause(iii) to sub-section (5) of Section 80G afresh upon granting an opportunity of being heard to the assessee and upon considering the evidences on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the ld. CIT(E), failing which the ld. CIT(E) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on record. Thus, the grounds raised by the assessee are allowed for statistical purposes. and does not require any separate adjudication and the same may be treated as infructuous. Ld. Sr. DR also did not raise any objection in this regard. Thus, considering the facts and circumstances of the case and the fact that the present appeal filed by the assessee is a duplication of therefore, the same is not required any separate adjudication and accordingly we dismiss the same as has become infructuous.
In the result, appeal of the assessee in is allowed for statistical purposes and is dismissed. Order pronounced in the open court on 24/06/2025. Sd/- Sd/- (RAKESH MISHRA) (DUVVURU RL REDDY) लेखा सदस्य/ ACCOUNTANT MEMBER उपाध्यक्ष / VICE PRESIDENT ददनाांक Dated 24/06/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- प्रत्यर्थी / The Respondent- 2.