ABHYUDAYA SWWA FOUNDATION,BENGALURU V. COMMISSIONER OF INCOME TAX, EXEMPTIONS, BANGALORE

ITA 1289/BANG/2025

AI Insights

M/s. Abhyudaya Sewa Foundation, a non-profit organization, appealed against the decisions of the Commissioner of Income Tax (Exemptions), Bengaluru, which denied them permanent registration under sections 12AA and 80G of the Income Tax Act. The foundation, established on 26/11/2023, focuses on charitable activities such as poverty relief, education, skill development, and environmental sustainability. The Commissioner had initially granted them provisional registration but later denied the permanent registration citing insufficient expenditure on charitable activities. The Tribunal, however, emphasized that the Commissioner should only assess the genuineness of the activities and the charitable nature of the objects at this stage, not the extent of expenditure on these activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716890 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 30-05-2025
• Laws Referred To: Section 12AA, Section 80G
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANAND H KALAKERI
• Assessee Lawyers: C.V. JAYARAM
• Section: 11; 12AA; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA Nos. 1280 & 1289/Bang/2025 Assessment Year : 2025-26 M/s. Abhyudaya Sewa Foundation, No. 75/76, 4th Cross, 2nd Main, Soudamini Layout, Konanakunte, Bangalore – 560 062. PAN: ABATS8638P Vs. The Commissioner of Income Tax (Exemptions), Bengaluru. APPELLANT RESPONDENT Assessee by : Shri C.V. Jayaram, CA Revenue by : Shri Shivanand H Kalakeri, CIT(DR) Date of Hearing : 18-08-2025 Date of Pronouncement : 20-08-2025 ORDER PER PRAKASH CHAND YADAV, JUDICIAL MEMBER Both these appeals of assessee are arising from separate orders of Ld.CIT(E), Bengaluru dated 24/03/2025. 2. The appeal in ITA No. 1289/Bang/2025 is related to denial of 12AA registration and the appeal in ITA No. 1280/Bang/2025 is related to the denial of the 80G registration. Printed from counselvise.com Page 2 of 3 ITA Nos. 1280 & 1289/Bang/2025 3. The brief facts of the case as coming out from the authorities below are that appellant is a section 8 company and incorporated on 26/11/2023. The appellant is a non-profit organisation. The main objects of the appellant are that to provide relief to the poor, education and skill development and environmental sustainability. The appellant got temporary/provisional registration in form 10AC on 31/03/2024. Thereafter the appellant vide application dated 30/09/2024 applied for permanent registration u/s. 12AA and 80G. 4. The application, for permanent registration, filed by the assessee has been dismissed by the Ld.CIT(E) solely on the ground that the appellant has spent a meagre amount in furtherance of charitable activities. 5. Aggrieved with the order of the Ld.CIT(E), the assessee has come up in appeal before us. 6. Since the facts and circumstances of both the appeals are same and related to the same assessee, we are deciding these appeals by way of this consolidated order. 7. The Ld. Counsel for the assessee reiterated the arguments made before the lower authorities and contended that it is settled position of law that Ld.CIT(E) cannot step into the shoes of assessing officer. It is next contended that at this stage of 12AA registration, the Ld.CIT(E) is required to see only the objects of the trust, whether they are charitable or not and the activities of the trust of the assessee, whether they are genuine or not. 8. The Ld. DR relied upon the order of the Ld.CIT(E). 9. After considering the rival submissions, we hereby observe that the Ld.CIT(E) has not at all disputed the factum that the objects of the assessee, which is a section 8 company are charitable in nature. The Ld.CIT(E) has merely rejected the application on the ground that the assessee has spent a Printed from counselvise.com Page 3 of 3 ITA Nos. 1280 & 1289/Bang/2025 meagre amount towards the charitable activities. In our view, the at the time of grant of registration u/s. 12AA and 80G two things are to be examined by the CIT(E) i.e. a) Whether activities of the assessee are genuine b) Whether the objects of the trust are charitable in nature. 10. It is settled position of law that at the time of grant of registration the CIT(E) cannot step into the shoes of assessing officer and examine the benefits of section 11 and 13, which are to be scrutinized by the assessing officer at later stage. In view of the above facts and circumstances of the case, we are of the firm opinion that the assessee is entitled for 12AA registration as well as the 80G registration. Hence both the appeals of the assessee stands allowed. 11. In the result, both the appeals filed by the assessee are allowed. Order pronounced in the open court on 20th August, 2025. Sd/- Sd/- (DR. DIPAK P. RIPOTE) (PRAKASH CHAND YADAV) Accountant Member Judicial Member Bangalore, Dated, the 20th August, 2025. /MS / Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order Assistant Registrar, ITAT, Bangalore Printed from counselvise.com "