PRATHIPATI RANGAMMA & SUBBAIAH CHARITABLE TRUST,HYDERABAD V. ITO EXEMPTIONS, WARD-1(3), HYDERABAD

ITA 785/HYD/2025

AI Insights

The case involves the Prathipati Rangamma & Subbaiah Charitable Trust, which appealed against the decision of the CIT (Exemptions) rejecting their application for approval under section 80G of the Income Tax Act. The rejection was based on a technical error in the selection of the section code in their application. The Trust argued that this was a bonafide mistake and that they had previously held approval under section 80G, which was renewed provisionally. The Tribunal found that the rejection on such a technical ground without allowing rectification was not justified and remanded the case for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712449 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A.V.RAGHURAM; P VINOD
• Keywords: Set aside; Bonafide mistake; Charitable institution
• Section: 80G

Judgement Text

" ITA 785 of 2025 Prathipati Rangamma & Subbaiah Charitable Trust Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.785/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2024-25) Prathipati Rangamma & Subbaiah Charitable Trust, Hyderabad PAN:AABTP2596D Vs. Income Tax Officer (Exemption) Ward 1 (3) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri A.V. Raghuram & P Vinod Advocates राज̾ व Ȫारा/Revenue by:: Shri Narender Kumar Naik, CIT(DR) सुनवाई की तारीख/Date of hearing: 23/07/2025 घोषणा की तारीख/Pronouncement: 30/07/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal filed by the assessee is directed against the order dated 31/03/2025 of the learned CIT (Exemptions), whereby the application of the assessee seeking approval u/s 80G of the Act was rejected. 2. The assessee has raised the following grounds of appeal: Printed from counselvise.com ITA 785 of 2025 Prathipati Rangamma & Subbaiah Charitable Trust Page 2 of 4 3. The learned Counsel for the assessee has submitted that the application of the assessee was rejected by the CIT (Exemptions) on technical ground for mistake in selection of section code i.e. 80G(5)(iv) instead of 80G(5)(i) of the Act. He has submitted that it is a case of existing Trust having the approval u/s 80G prior to 1/4/2021. However, when the assessee applied for renewal of the approval u/s 80G granted vide order dated 26/09/2006, the CPC granted provisional approval and therefore, the assessee has filed the application in Form-10AB seeking regular registration u/s 80G of the Act which has been rejected on this technical ground. 4. On the other hand, the learned DR has relied upon the order of the CIT (Exemptions). Printed from counselvise.com ITA 785 of 2025 Prathipati Rangamma & Subbaiah Charitable Trust Page 3 of 4 5. We have considered the rival submission as well as the relevant material available on record. At the outset, we note that the CIT (Exemptions) has rejected the application of the assessee for approval u/s 80G by giving the following reasons in para 3 & 4 as under: 6. Thus, it is clear that the assessee is an existing Trust having approval u/s 80G of the Act vide order dated 20/06/2006 and thereafter, in view of the amendment in the provisions of the Act, the assessee applied for renewal of the approval which was considered by the CPC for provisional approval and granted vide order dated 24/09/2021. Once provisional approval was granted by the CPC, the assessee was left with no option but to file an application in Form 10AB seeking regular approval u/s 80G of the Act. Therefore, a mere technical and bonafide mistake in mentioning the clause of section 80G(5) in the application for renewal of the approval u/s 80G of the Act would not alter the fact that the assessee is an existing Trust having approval u/s 80G dated 26/09/2006. Therefore, rejection of the application on technical ground without giving an opportunity to the assessee or allowing the assessee to rectify the said mistake in the application is not justified. Accordingly, in the facts and circumstances of the case, the impugned order of the CIT (Exemptions) is set aside, and Printed from counselvise.com ITA 785 of 2025 Prathipati Rangamma & Subbaiah Charitable Trust Page 4 of 4 the matter is remanded to the record of the learned CIT (Exemptions) for reconsideration of the application of the assessee for registration u/s 80G. The assessee is also directed to file the rectified application for approval u/s 80G of the Act. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 30th July, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 30th July, 2025 Vinodan/sps Copy to: S.No Addresses 1 Prathipati Rangamma & Subbaiah Charitable Trust, 8-3- 229/30 Tahir Villa, Khairatabad, Yousufguda, Hyderabad 500045 2 Income Tax Officer Exemptions Ward 1(3) Aayakar Bhavan, Basheerbagh Hyderabad 500004 3 Pr. CIT – Exemptions, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com "