IKKA LEARNING FOUNDATION,HYDERABAD V. CIT (EXEMPTION), HYDERABAD

ITA 197/HYD/2025

AI Insights

The case involves Ikka Learning Foundation, a Section-8 company, which applied for registration under section 80G of the Income Tax Act, 1961, to receive tax-exempt donations. The Commissioner of Income Tax (Exemption) initially granted them registration under section 12AB(1) but rejected the 80G application, citing insufficient evidence of substantial charitable activities. The Tribunal heard the appeal, where the foundation argued that they had conducted significant skill development programs funded by CSR contributions, and presented evidence of these activities. The CIT-DR supported the initial rejection, suggesting a lack of comprehensive documentation. The Tribunal criticized the CIT(E)'s decision for lacking detailed reasoning and not adequately considering the submitted evidence, leading to the remand for further evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312989 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. NARMADA
• Assessee Lawyers: A AKHIL YADAV
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “B” BENCH: HYDERABAD BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA.No.197/Hyd./2025 [U/sec.80G of the Income Tax Act, 1961] Ikka Learning Foundation, Hyderabad – 500 058. Telangana. PAN AAHCI0161Q vs. The Commissioner of Income Tax (Exemption), Hyderabad – 500 004. Telangana. (Appellant) (Respondent) For Assessee : CA A Akhil Yadav For Revenue : MS. M. Narmada, CIT-DR Date of Hearing : 30.04.2025 Date of Pronouncement : 30.04.2025 ORDER PER MANJUNATHA G. : This appeal has been filed by the assessee against the order dated 12.12.2024, of the learned CIT(E) in rejecting the application of the assessee filed in Form-10AB for registration u/sec.80G of the Income Tax Act, 1961 [in short “the Act”]. 2 ITA.No.197/Hyd./2025 2. Briefly stated facts of the case are that, the appellant “Ikka Learning Foundation” is a Section-8 company registered under the Companies Act, 2013, incorporated on 19.01.2023. The main objects of the company is to organise accessible skill development programs for women and young graduates from rural and semi-urban areas of Andhra Pradesh and Telangana. The appellant filed an application seeking for regular registration u/sec.12AB(1) and for regular approval u/sec.80G(5) of the Income Tax Act, 1961 on 04.06.2024. The learned CIT(E) after verification of genuineness of the activities and documents submitted, passed his order on 16.12.2024 granting registration u/sec.12AB(1) of the Act. However, he had rejected the application filed by the appellant for registration u/sec.80G(5) of the Act on the ground that no substantial charitable activities are being carried-out by the appellant trust. 3. Being aggrieved by the order of the learned CIT(E), the assessee is now in appeal before the Tribunal. 3 ITA.No.197/Hyd./2025 4. CA A. Akhil Yadav-Learned Counsel for the Assessee, referring to the Memorandum of Association of the appellant-company and more particularly, it’s main objects submitted that, the appellant-trust is engaged in providing skill development programs for women and young graduates from rural and semi-urban areas of Andhra Pradesh and Telangana, for which, it has received CSR funds from various corporates. Further, the appellant-trust has spent the amount towards various programmes for development of skill for women and young graduates, for which, relevant evidences and also photographs have been furnished before the learned CIT(E). The learned CIT(E) without considering the details, simply rejected the application filed by the assessee. Therefore, he submitted that, the order of the learned CIT(E) should be set aside and registration should be granted to the assessee. 5. MS. M. Narmada, learned CIT-DR, on the other hand, supporting the order of the learned CIT(E) submitted that, although, the learned CIT(E) has not discussed the objects of appellant-trust, but, the fact remains that, the 4 ITA.No.197/Hyd./2025 assessee has furnished only part particulars and in absence of all the particulars/documentary evidences, the application filed by the appellant-trust could not be examined by the learned CIT(E). therefore, in order to verify the objects and activities, the matter may be remitted back to the file of learned CIT(E). 6. We have heard both the parties, perused the material on record and the orders of the authorities below. We find that, there is no dispute between the parties that the assessee is a trust and carrying-out skill development programmes for women and young graduates from rural and semi-urban areas of Andhra Pradesh and Telangana. The learned CIT(E) granted registration u/sec.12AB(1) of the Act vide order dated 16.12.2024 after considering the relevant documents furnished by the assessee, however, rejected the application filed by the assessee for registration u/sec.80G(5) of the Act. We find that, the assessee-trust is carrying-out skill development programmes for women and young graduates from rural and semi-urban areas of Andhra Pradesh and Telangana, for which, it has received 5 ITA.No.197/Hyd./2025 CSR funds various corporates. The assessee has also spent amounts towards various programmes for development of skill for women and young graduates and also filed relevant evidences and photographs before the learned CIT(E). Further, from the careful perusal of the order of the learned CIT(E), the learned CIT(E) did not give reasons for decision and simply rejected the application filed in Form-10AB for registration u/sec.80G of the Act by simply observing that “no substantial activities which are charitable in nature are being carried-out by the assessee-trust”. We find that the learned CIT(E) has passed a lackadaisical order, without considering the documentary evidences filed by the assessee-trust. In this connection, we may note that, although, the Government is taking steps for providing skill development for women and young graduates by conducting work-shops and seminars, but, as a matter of fact, the efforts taken-up by the Government is not at all enough/sufficient. Therefore, in our view, if any trust, like the assessee-trust before us, came forward to providing skill development for women and young graduates in rural and 6 ITA.No.197/Hyd./2025 semi-urban areas, such noble activities by Trust(s) established by some individuals/group of persons, shall be encouraged in true letter and spirit. Therefore, going by the objects of the appellant-trust and activities carried-out during the year, we are of the considered view that in principle the appellant trust is eligible for registration u/sec.80G of the Act. We, therefore, set aside the matter in issue back to the file of learned CIT(E) for limited purpose of verification and considering application filed by the assessee for registration u/sec.80G of the Act. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 30.04.2025 Sd/- Sd/- [RAVISH SOOD] [MANJUNATHA G] JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 30th April, 2025 VBP 7 ITA.No.197/Hyd./2025 Copy to 1. Ikka Learning Foundation, Plot 865, Vishaka Nagar, Phase-II, Road No.4, Almasguda, Hyderabad – 500 058. Telangana 2. The Commissioner of Income Tax (Exemption), Aaaykar Bhavan, Opp. LB Stadium, Basheerbagh, Hyderabad – 500 004 3. The Pr. CIT, Central, Hyderabad. 4. The DR ITAT “B” Bench, Hyderabad. 5. Guard File. //By Order// //True Copy// "