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SRI GURU TRUST,CUTTACK vs INCOME TAX OFFICER, EXEMPTION, CUTTACK | BharatTax

SRI GURU TRUST,CUTTACK vs. INCOME TAX OFFICER, EXEMPTION, CUTTACK

ITA 91/CTK/2025Status: DisposedITAT Cuttack24 June 2025AY 2025-26Bench: SHRI DUVVURU RL REDDY (Vice President), SHRI RAKESH MISHRA (Accountant Member)1 pages

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Facts

The assessee, a charitable trust, applied for registration under Section 80G of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) rejected the application, stating that the trust was not carrying out substantial charitable activities. The assessee had previously been granted registration under Section 12A of the Act.

Held

The Tribunal noted that the assessee was already registered under Section 12A, which implies satisfaction with its charitable objects and activities. The rejection of the 80G application was based on a general statement without specific findings.

Key Issues

Whether the denial of registration under Section 80G was justified when the assessee already held a valid registration under Section 12A and its charitable nature was previously accepted.

Sections Cited

80G, 12A, 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI DUVVURU RL REDDY & SHRI RAKESH MISHRA

Hearing: 20/05/2025Pronounced: 24/06/2025

O R D E R

Per Duvvuru RL Reddy, Vice President:

1.

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. is a duplication of .

2.

First we shall take into consideration the appeal of the assessee in . 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.

3.

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.

4.

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.

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.