RAINBOW CHILDREN'S HOSPITAL FOUNDATION,HYDERABAD V. CIT (EXEMPTIONS) , HYDERABAD

ITA 314/HYD/2025

AI Insights

M/s. Rainbow Children’s Hospital Foundation filed an appeal against the order of the Commissioner of Income Tax (Exemptions), Hyderabad, which rejected their application for approval under Section 80G of the Income Tax Act, 1961. The rejection was based on the grounds that the trust was not carrying out substantial charitable activities. During the tribunal proceedings, the assessee requested an opportunity to submit further documents, which led to the decision to remand the case back to the CIT(E) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706889 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: misc
• Appeal Filed On: 24-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P. VINOD; APPEARED
• Keywords: Opportunity of being heard; Additional evidence; Principle of natural justice
• Section: 80G

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad श्री रविश सूद, न् याययक सदस् य एवं श्री मिुसूदन सावडिया, लेखा सदस् य क े समक्ष । BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.314/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2025-26) M/s. Rainbow Children’s Hospital Foundation, Hyderabad. PAN:AAFTR1353N Vs. Commissioner of Income Tax (Exemptions), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri P. Vinod, Advocate appeared for Shri K.A. Sai Prasad. रधजस् व द्वधरध/Revenue by:: Shri B. Bala Krishna, CIT-DR सुिवधई की तधरीख/Date of hearing: 08/07/2025 घोर्णध की तधरीख/Pronouncement: 10/07/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M.: This appeal is filed by M/s. Rainbow Children’s Hospital Foundation (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Exemptions), Hyderabad (“Ld. CIT(E)”), dated 31.12.2024 for the A.Y. 2025-26. 2. The assessee has raised the following grounds of appeal : ITA No.314/Hyd/2025 2 3. The brief facts of the case are that this present appeal has been filed by the assessee against the order passed by the Ld. CIT(E) in Form No. 10AD dated 31.12.2024, rejecting the assessee’s application for approval under Section 80G of the Income Tax Act, ITA No.314/Hyd/2025 3 1961 (“the Act”), filed in Form No. 10AB. In the course of appellate proceedings before the Tribunal, the assessee had filed an application seeking adjournment. However, considering the nature of the issue and the material available on record, the Bench proceeded to adjudicate the matter based on the appeal grounds and records available. 3.1 On perusal of Form No. 10AD and other documents on record, it is seen that the Ld. CIT(E) has rejected the assessee’s application primarily on the ground that no substantial charitable activity is being carried out by the trust. 4. The Learned Authorised Representative (“Ld. AR”) of the assessee has specifically contended that, the Ld. CIT(E) failed to appreciate the evidentiary material and documents placed on record to demonstrate that the trust is engaged in genuine charitable activities in accordance with its objects. The Ld. AR prayed before the bench, one more opportunity may be provided to submit all the documents before the Ld. CIT(E). ITA No.314/Hyd/2025 4 5. Per contra, the Learned Departmental Representative (“Ld. DR”) relied on the findings of the Ld. CIT(E) and submitted that, the application was rightly rejected due to lack of evidence of genuine charitable activity. However, in fairness, the Ld. DR submitted that if the assessee has fresh evidence or supporting documents to justify its claim, the matter may be remanded back to the Ld. CIT(E) for fresh adjudication on merits, after affording proper opportunity of being heard. 6. We have heard the rival submissions and also gone through the record in the light of the submissions made by either side. We have perused the order of the Ld. CIT(E) rejecting the assessee’s application in Form No. 10AB seeking approval under Section 80G of the Act. We find that the application has been rejected on the basis that no substantial charitable activity has been carried out by the assessee-trust. However, from the grounds of appeal, it is evident that the assessee has claimed to have filed relevant documents in support of its charitable activities, which were allegedly not appreciated or examined by the Ld. CIT(E). Considering the principles of natural justice and substantive fairness, and also keeping in view the ITA No.314/Hyd/2025 5 submission of the Ld. DR, we are of the considered opinion that the matter requires reconsideration. Therefore, in the interest of justice, we deem it appropriate to remand the matter back to the file of the Ld. CIT(E) with a direction to grant proper opportunity of being heard to the assessee, including the liberty to file any additional evidence in support of its claim of charitable activities. The Ld. CIT(E) shall thereafter pass a reasoned order in accordance with law, after considering all submissions and documents filed by the assessee. In view of the above discussion, the matter is restored to the file of the Ld. CIT(E) for de novo adjudication in accordance with law. The assessee is directed to cooperate and file all relevant documents as may be required during the proceedings. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 10th July, 2025. Sd/- Sd/- (RAVISH SOOD) (MADHUSUDAN SAWDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad. Dated: .07.2025. * Reddy gp ITA No.314/Hyd/2025 6 Copy of the Order forwarded to : 1. M/s. Rainbow Children’s Hospital Foundation, 8-2-120/103/1, Survey No.403, Roade No.2, Banjara Hills, Hyderabad-500034 2. CIT(Exemptions), Hyderabad. 3. Pr.CIT (Exemptions), Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard file. BY ORDER, "