AKSHAYA JAGRUTHI FOUNDATION,GURAZALA V. INCOME TAX OFFICER , GUNTUR

ITA 157/VIZ/2025

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The case involves the Akshaya Jagruthi Foundation, which appealed against the rejection of their application for registration under section 80G of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Exemption), Hyderabad. The foundation had sought this registration to qualify for tax exemptions on donations received. The primary contention was whether the activities of the foundation were in line with the objectives stated in their Trust Deed, which is a requirement under section 80G for registration. The tribunal noted that the CIT(E) did not specify which activities were not in line with the Trust's objectives, leading to the decision to remit the matter back for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360673 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATYA SAI RATH
• Assessee Lawyers: GVN HARI
• Section: 80G

Judgement Text

" आयकर अपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM श्री धिजय पाल राि, उपाध्यक्ष एिं श्री एस बालाकृष्णन, लेखा सदस्य के समक्ष BEFORE SHRI VIJAY PAL RAO, HON’BLE VICE PRESIDENT & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER (Hybrid Hearing) आयकर अपील सं./ I.T.A. No.157/Viz/2025 (धनिाारण िर्ा / Assessment Year: NA) Akshaya Jagruthi Foundation, Gurazala. PAN: AAKTA4194K Vs. Income Tax Officer, Ward-1(1), Guntur. (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलार्थी की ओर से/ Assessee by : Shri GVN Hari, Advocate प्रत्यार्थी की ओर से / Revenue by : Dr. Satyasai Rath, CIT-DR सुनिाई की तारीख / Date of Hearing : 30/04/2025 घोर्णा की तारीख/Date of Pronouncement : 20/05/2025 O R D E R PER S. BALAKRISHNAN, AM: 1. This appeal is filed by the assessee against rejection order passed by the Learned Commissioner of Income Tax (Exemption), Hyderabad 2 [hereinafter in short “Ld.CIT(E)”] vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1073235398(1) dated 13/02/2025. 2. Briefly stated facts of the case are, assessee has filed an e- application in Form No. 10AB seeking registration under section 80G of the Income-Tax act, 1961 (in short “Act”). Ld.CIT(E) issued Notices to the assessee in respect of proceedings under section 80G(5)(iii) of the Act, to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee has submitted partial information only. Subsequently, another notice dated 26/12/2024 was issued to the assessee to submit the information including relevant documentary evidences. However, there is no compliance to the notice issued by the Ld. CIT(E). Therefore, Ld. CIT(E) by observing that the activities are not in commensurate with the activities as per objectives of the registered Deed/MOA/AOA, which is not as per the provisions of section 80G of the Act and rejected the application filed for registration U/s. 80G of the Act. 3. Aggrieved by the rejection order of the Ld. CIT(E), assessee filed an appeal before us by raising following grounds of appeal: - “1. The order of the Ld. CIT(E), Hyderabad is contrary to the facts and also the law applicable to the facts of the case. 3 2. The Ld. CIT(E) is not justified in rejecting the application filed by appellant in Form-10AB for Registration U/s. 80G of the Act. 3. Any other ground that may be urged at the time of haring.” 4. The only issue contested by the assessee is rejection of the Registration u/s 80G, by the Ld.CIT (E). On this issue, Ld. Authorized Representative [hereinafter “Ld.AR”] submitted that the Ld. CIT(E) has denied the registration U/s. 80G of the Act because of low scale operations of the assessee during the relevant assessment year. He further vehemently argued that the scale of operations does not determine the charitable nature whereas it has to be examined whether the activities of the institution are charitable nature for granting registration U/s. 80G of the Act. Therefore, he prayed for remitting the matter back to the Ld. CIT(E) to decide the issue afresh. 5. Per contra, the Learned Departmental Representative (“Ld. DR”) heavily relied on the order of the Ld. CIT(E). 6. We have heard both the sides and perused the material available on record. We observe that Ld. CIT(E) rejected the application for grant of registration u/s 80G, of the assessee by observing as under: “3. On perusal of the submissions made by the assessee, it is observed that activities are not commensurate with the activities as per objectives of the registered Deed/MOA/AOA, which is not as per the provisions of the section 80G of the IT Act, 1961. In view of the above, the present application in Form 10AB for registration U/s. 80G is herewith rejected.” 4 The Ld. CIT (E) rejected the application filed in Form-10AB for registration U/s. 80G of the Act by holding that the activities of the assessee Trust does not commensurate with the activities as per the objects of the registered Trust Deed / MOA/AOA. Before us, as argued by the Ld. AR, we are of the considered view that the Ld.CIT(E) has not categorically stated which activity of the Trust does not commensurate with the objects of the Trust Deed by passing a speaking order. The Ld.CIT(E) has casually observed without stating which of the objects does not commensurate with the objectives of the Trust Deed. After considering the objects of the Trust cited by Ld AR, we consider deem it fit to remit the issue to the file of the Ld. CIT(E) for fresh consideration after providing reasonable opportunity to the assessee. Accordingly, appeal of the assessee is allowed for statistical purposes. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Pronounced in the open Court on 20th May, 2025. Sd/- Sd/- (VIJAY PAL RAO) (S. BALAKRISHNAN) उपाध्यक्ष/VICE PRESIDENT लेखा सदस्य/ACCOUNTANT MEMBER Dated : 20/05/2025 OKK - SPS 5 आदेश की प्रधतधलधप अग्रेधर्त/Copy of the order forwarded to:- 1. धनिााररती/ The Assessee – Akshaya Jagruthi Foundation, 4-77 Patha Amabapuram V, Gurazala, Palanadu, Andhra Pradesh-522415. 2. राजस्ि/The Revenue – Income Tax Officer, Ward1(1), Guntur. 3. The Principal Commissioner of Income Tax, 4. आयकर आयुक्त (अपील)/ The Commissioner of Income Tax 5. धिभागीय प्रधतधनधि, आयकर अपीलीय अधिकरण, धिशाखापटणम/ DR, ITAT, Visakhapatnam 6. गार्ा फ़ाईल / Guard file आदेशानुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "