PROF V S RAJU FAMILY CHARITABLE TRUST,HYDERABAD V. ITO., EXEMPTION WARD-1(3), HYDERABAD

ITA 777/HYD/2025

AI Insights

The case involves the Prof. V.S. Raju Family Charitable Trust, which appealed against the decision of the CIT (Exemptions) rejecting their application for renewal of registration under section 12AB of the Income Tax Act. The Trust had previously been granted registration, which was set to expire, and they sought renewal by submitting all necessary documents and evidence of their charitable activities. The CIT (Exemptions) rejected the application citing lack of verifiable documentary evidence to justify the charitable activities. The Tribunal found that the CIT (Exemptions) had not adequately considered the evidence provided by the Trust and thus remanded the case for a thorough re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711261 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G. SRINIVASA RAO; GIVING
• Keywords: Set aside; Charitable institution

Judgement Text

" ITA No 777 of 2025 Prof VS Raju Family 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.777/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2026-27) Prof. V.S. Raju Family Charitable Trust, Hyderabad PAN: Vs. Income Tax Officer (Exemptions) Ward 1(3) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri G. Srinivasa Rao, CA राज̾ व Ȫारा/Revenue by:: Shri Narender Kumar Naik, CIT(DR) सुनवाई की तारीख/Date of hearing: 22/07/2025 घोषणा की तारीख/Pronouncement: 25/07/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the assessee is directed against the order dated 31/03/2025 of the learned CIT (E), Hyderabad whereby the application of the assessee for renewal of registration u/s 12AB of the Act was rejected. 2. The learned AR of the assessee has submitted that the assessee has filed the application in Form 10AB seeking renewal Printed from counselvise.com ITA No 777 of 2025 Prof VS Raju Family Charitable Trust Page 2 of 4 of registration u/s 12AB which was earlier granted on 7/6/2024 valid from A.Y 2021-22 to 2025-26. Therefore, the assessee has made this application on Form 10AB on 20/09/2024 for renewal of the registration u/s 12AB of the Act. He has further submitted that the assessee has filed all the relevant record and documents before the CIT (Exemptions). He has referred to the reply filed by the ass dated 6/12/2024 placed at page Nos.40 to 45 of the paper book and also all the relevant records including the financial statements at page No.46 to 89 of the paper book. Thus, the learned AR has submitted that when the assessee has produced all the relevant record and evidence to show charitable activity carried out by the assessee, then the rejection of the application by the learned CIT (Exemptions) on the ground that no charitable activity is found contrary to the record and facts. 3. On the other hand, the learned DR has relied upon the impugned order of the learned CIT (Exemptions). 4. We have considered the rival contentions as well as the relevant material available on record. The learned CIT (Exemptions) has rejected the application of the assessee by giving the reasons in para 3 of the impugned order as under: “3. On perusal of the submissions made by the assessee, it is observed that the charitable activities are not justified with verifiable documentary evidence which is in violation of the provisions of the section 12AB of the IT Act, 1961. The assessee obtained regular registration u/s Printed from counselvise.com ITA No 777 of 2025 Prof VS Raju Family Charitable Trust Page 3 of 4 12AB in form 10AD dated 07.06.2024 valid from AY 2021-22 to AY 2025-26. The assessee further made application in form 10AB on 20.09.2024 for renewal of registration u/s 12AB. In view of the above, the present application in form 10AB for renewal registration u/s 12AB is herewith rejected.” 5. Thus, the reasons assigned by the learned CIT (Exemptions) are that the charitable activities are not justified with verifiable documents, whereas we find that the assessee filed all the relevant evidence including the financial statements, bank account statements and details of the charitable activities carried out by the assessee. The learned CIT (Exemptions) has not pointed out any defect in those documents as well as the details filed by the assessee. Accordingly, in the facts and circumstances of the case, the impugned order passed by the learned CIT (Exemptions) is found to be without considering the relevant record filed by the assessee. Hence, the same is set aside and the matter is remanded to the record of the learned CIT (Exemptions) for reconsideration of the application of the assessee for renewal of registration u/s 12AB of the Act after considering the relevant records. Needless to say, the assessee shall be given an appropriate opportunity of hearing to the assessee before passing the fresh order. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Printed from counselvise.com ITA No 777 of 2025 Prof VS Raju Family Charitable Trust Page 4 of 4 Order pronounced in the Open Court on 25th July, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 25th July, 2025 Vinodan/sps Copy to: S.No Addresses 1 Prof. V.S. Raju Family Charitable Trust, 105 Daffodil, L&T Street County, Telecom Nagar, Gachibowli, Hyderabad 500032 2 Income Tax Officer (Exemptions) Ward 1(3) Aayakar Bahvan, Basheerbagh, Hyderabad 500004 3 Pr. CIT – Exemptions, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com "