ROTI BANK HYDERABAD,HYDERABAD V. CIT(EXEMPTION), HYDERABAD

ITA 210/HYD/2025

AI Insights

The case involves Roti Bank Hyderabad, which appealed against the decision of the Commissioner of Income Tax (Exemptions) who rejected their application for final registration under Section 80G of the Income Tax Act, 1961. The Tribunal found that the Commissioner had not adequately considered the substantial evidence provided by the assessee, which demonstrated their charitable activities, specifically providing food to the poor and destitute. The Tribunal noted that the Commissioner's order was cryptic and did not specify how the evidence was insufficient, leading to the decision to set aside the rejection and remand the case for a thorough reevaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714650 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2023-2024
• Other Referred Cases: Sri Ganga Charitable Trust Vs. CIT(Exemptions) in ITA No.203/Hyd/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRASOON KABRA
• Assessee Lawyers: PAVAN KUMAR SOLANKI
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice President and Shri Manjunatha G., Accountant Member आ.अपी.सं /ITA No.210/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2023-24) Roti Bank Hyderabad Hyderabad PAN : AAETR5597H Vs. Commissioner of Income Tax (Exemption) Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri Pavan Kumar Solanki, AR रधजस् व द्वधरध/Revenue by: Shri Prasoon Kabra, CIT-DR सुिवधई की तधरीख/Date of Hearing: 30/07/2025 घोर्णध की तधरीख/ Date of Pronouncement: 06/08/2025 आदेश / ORDER PER VIJAY PAL RAO, VICE PRESIDENT: This appeal filed by the assessee is directed against the order dated 16.12.2024 of the Commissioner of Income Tax (Exemptions) [“Ld.CIT(E)”], Hyderabad, whereby the application of the assessee seeking approval u/s 80G of the Income Tax Act, 1961 (“the Act”) was rejected. Printed from counselvise.com 2 ITA No.210/Hyd/2025 Roti Bank Hyderabad 2. The assessee has raised the following grounds of appeal: (i) That the Learned CIT(Exemption) erred in law and on facts in rejecting the Appellant’s application for final registration under Sevtion 80G without ppreciating the bona fide nature of the Appellant’s activities and its compliance with statutory requirements. (ii) That the order of the Learned CIT(Exemptions) is arbitrary and contrary to the provisions of the Income Tax Act, 1961 and passed without proper application of mind to the facts and circumstances of the case. (iii) The appellant was under the bona fide impression that the approval for final registration under Section 80G would be granted, in the absence of any objections raised by the Learned CIT(Exemptions) prior to the issuance of the final rejection order. Furthermore, the appellant had submitted the required information promptly and completely in response to all the notices issued. (iv) That the Appellant has been duly registered under Section 12AB of the Income Tax Act, 1961 and its activities are entirely charitable in nature, which entitles it to registration under Section 80G. (v) That the rejection of the application is based on surmises and conjectures, rather than being supported by any concrete evidence that indicates non-compliance or misuse of the provisions. 3. The Ld.AR of the assessee has submitted that the assessee Trust was granted provisional approval u/s 80G of the Act on 24.03.2023. Thereafter, the assessee filed an application in Form 10AB, seeking regular approval u/s 80G of the Act, which has been rejected by the Ld.CIT(E), on the ground that, no substantial activities, which are charitable in nature are being carried out by the assessee. The Ld.AR has submitted that the assessee has Printed from counselvise.com 3 ITA No.210/Hyd/2025 Roti Bank Hyderabad produced all the relevant details and evidences to show the charitable activities carried out by the assessee, by providing food to the poor and destitute. He has referred to the paper book running into 275 pages and submitted that, apart from the financial statements, the assessee has also produced the other evidences directly on the activities of the assessee, carried out by providing food to the poor, however, the Ld.CIT(E) passed the order without considering the relevant details and evidences filed by the assessee. Thus, he has pleaded that the impugned order of the Ld.CIT(E) is liable to be set aside and appropriate directions be issued to the Ld.CIT(E) for grant of approval u/s 80G of the Act. In support of his contentions, he has relied upon the decision of the coordinate bench of this Tribunal dated 06.05.2025 in the case of Sri Ganga Charitable Trust Vs. CIT(Exemptions) in ITA No.203/Hyd/2025. 4. On the other hand, the Ld.DR relied upon the impugned order of the Ld.CIT(E) and submitted that, when it was found that the assessee has not carried out any substantial activity of charitable in nature, then the rejection of application for grant of approval u/s 80G is justified. 5. Having considered the rival submissions and careful perusal of the impugned order, at the outset, we note that the Ld.CIT(E) has rejected the application of the assessee for approval u/s 80G by giving the reasons in para 3 as under : Printed from counselvise.com 4 ITA No.210/Hyd/2025 Roti Bank Hyderabad “3. On perusal of the submissions made by the assessee, it is observed that no substantial activities, which are charitable in nature are being carried out by the assessee, which is in violation of 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.” 6. The reasons given by the Ld.CIT(E) for rejection of application do not spell out as what record the assessee has filed to substantiate the charitable activities carried out by it and how the said record and details filed by the assessee are not considered as a proof of carrying out charitable activity. Once, the assessee has filed voluminous record including the financial statements, return of income, the expenditure incurred by the assessee as well as the articles and photographs of the charitable activity carried out by the assessee along with the list of donors and application of income, then, this cryptic order passed by the Ld.CIT(E) is contrary to the facts on record produced by the assessee. Accordingly, in the facts and circumstances of the case, the impugned order of the Ld.CIT(E) is set aside and the matter is remanded to the record of the Ld.CIT(E), with a direction to reconsider the application of the assessee, after taking into consideration the relevant record and evidences filed by the assessee as well as after giving an opportunity of hearing to the assessee. Printed from counselvise.com 5 ITA No.210/Hyd/2025 Roti Bank Hyderabad 7. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the Open Court on 6th August, 2025. Sd/- Sd/- (MANJUNATHA G.) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE PRESIDENT Hyderabad, Dated 6th August, 2025 L.Rama, SPS Copy to: S.No Addresses 1 Roti Bank Hyderabad, Plot No.103, Prashashan Nagar, Jubilee Hills, Shaikpet, Hyderabad 2 The Commissioner of Income Tax (Exemption), Aayakar Bhavan, Opposite LB Stadium, Basheer Bagh, Hyderabad 4 The Pr.Commissioner of Income Tax, Hyderabad 4 The DR, ITAT, Hyderabad Benches 5 Guard File TRUE COPY SENIOR PRIVATE SECRETARY ITAT, HYDERABAD Printed from counselvise.com "