TEAM COLOURS FOUNDATION,VADLAMURU vs. ITO, EXEMPTION WARD, RAJAHMUNDRY

ITA 730/VIZ/2025Status: DisposedITAT Visakhapatnam30 January 2026AY 2023-24Bench: Ld.CIT(A) and this First Appellate Authority confirmed the addition by stating that the Trust doesn't have Registration u/s 12AB and hence all the donations were taxable as corpus donations. For coming to this conclusion, the Ld.CIT(A) quoted several decisions in his appeal order including a Supreme Court decision of UP Forest Corporation Vs. CIT, 297 ITR 1 (SC). 5. The appellant Trust filed an appeal before ITAT with the grounds of appeal mentioned in para 2 of this order. Apart from argui1 pages
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What did the Tribunal hold?

The Tribunal held that the assessment order nowhere mentioned that the registration u/s 12AB was cancelled. The CIT(A) proceeded under the wrong presumption that the registration was cancelled, which was incorrect as no such cancellation order was available. The argument of the appellant's AR was found to be correct.

What were the facts?

The assessee's appeal was filed against the order of the CIT(A) which confirmed the addition made by the AO. The AO had selected the case for cancellation of registration u/s 12A/12AB, as the registration u/s 80G(5) was rejected. The assessment order showed total receipts of Rs.46,270/- and expenditure of Rs.80,128/-, with the total expenditure exceeding total receipts.

What were the issues?

Whether the cancellation of registration u/s 12AB was validly done by the authorities and if voluntary contributions should be treated as donations and expenditure reduced from income.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A,Section 80G(5),Section 11

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Income Tax Appellate Tribunal, Visakhapatnam “SMC” Bench, Visakhapatnam

PER OMKARESHWAR CHIDARA, A.M : This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No.ITBA/NFAC/S/250/2025-26/1081351778(1) dated 30.09.2025, pertaining to the assessment year 2023-24. 2 Team Colours Foundation

2.

In the above cited assessee

The order continues below.

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