SRI ADILAKSHMI KAMESWARI AMMAVARI TRUST,VIJAYAWADA V. CIT (EXEMPTION), TELANAGANA

ITA 354/HYD/2025

AI Insights

The case involves the Sri Adilakshmi Kameswari Ammavari Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Hyderabad, rejecting their application for permanent registration under section 80G(5) of the Income Tax Act, 1961. The Trust, established with the objective of engaging in charitable activities, initially received provisional registration but sought permanent registration by filing Form No.10AB. The CIT(E) rejected the application citing insufficient evidence of substantial charitable activities. The Tribunal found that the CIT(E) had not adequately considered the Trust's activities or the evidence provided, leading to the decision to remit the matter back for a thorough reassessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708352 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDER KUMAR NAIK

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “B” BENCH: HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER ITA.No.354/Hyd./2025 Assessment Year 2024-2025 Sri Adilakshmi Kameswari Ammavari Trust, VIJAYAWADA. PIN – 520 003. PAN AAUTS9546F vs. The Commissioner of Income Tax (Exemption), Hyderabad – 500 004. (Appellant) (Respondent) For Assessee : -None- For Revenue : Sri Narender Kumar Naik, CIT-DR Date of Hearing : 09.07.2025 Date of Pronouncement : 16.07.2025 ORDER PER MANJUNATHA G. : This appeal has been filed by the Assessee-Trust against the order dated 27.12.2024 of the learned Commissioner of Income Tax-(Exemptions), Hyderabad, in rejecting the application filed in Form-10AB for registration u/sec.80G of the Income Tax Act, 1961 [in short “the Act]. 2. Brief facts of the case are that, the assessee is a Trust registered with the Sub-Registrar of Assurances, 2 ITA.No.354/Hyd./2025 Vijayawada vide Trust Deed No.627-4-60, dated 23.07.2017. The primary objective of the Trust is to engage in charitable activities, including relief of the poor, education and medical relief. The assessee-trust was initially granted provisional registration u/sec.80G(5) of the Income Tax Act, 1961, vide order dated 29.03.2022. Thereafter, the assessee-trust applied for permanent registration u/sec.80G(5) of the Act by filing Form No.10AB on 29.06.2024. The learned CIT(E) issued notices dated 27.08.2024 and 27.11.2024 calling the assessee-trust to furnish requisite information. In response, the assessee-trust has filed all the details. However, the learned CIT(E) being not satisfied with the submissions / documentary evidences furnished by the assessee-trust rejected the application filed by the assessee-trust in Form No.10AB for registration u/sec.80G of the Act vide order dated 27.12.2024 by observing that, no substantial activities which are charitable in nature are being carried- out by the assessee, which is in violation of provisions of sec.80G of the Act and, therefore, the learned CIT(E) rejected the application filed by the assessee-trust in Form 3 ITA.No.354/Hyd./2025 No.10AB for registration u/sec.80G of the Income Tax Act, 1961. 3. Aggrieved by the order of the learned CIT(E), the assessee-trust is now in appeal before the Tribunal. 4. During the course of hearing, none appeared for assessee-trust nor any application filed seeking for adjournment or filed written submissions in support of the contentions. Therefore, we proceed to decide the appeal on merits, after hearing the Learned DR. 5. Shri Narender Kumar Naik, learned CIT-DR, supporting the order of learned CIT(E) submitted that, the assessee-trust has made an application for registration in Form-10AB for registration u/sec.80G(5) of the Act. He further submitted that, since the assessee-trust has failed to prove it’s onus of charitable activities carried-out by it with supporting documents to the satisfaction of the learned CIT(E), he rejected the application filed by the assessee- society in Form-10AB for registration u/sec.80G(5) of the Act and that, the order of the learned CIT(E) is in 4 ITA.No.354/Hyd./2025 accordance with law. He accordingly submitted that the order of the learned CIT(E) be confirmed. 6. We have heard the learned CIT-DR, perused the grounds of appeal, material on record and the order of the learned CIT(E). We find that, the learned CIT(E) has dismissed the application filed by the assessee-trust in Form-10AB seeking for registration u/sec.80G(5) of the Income Tax Act, 1961 by observing that, “no substantial activities which are charitable in nature are being carried-out by the assessee, which is in violation of provisions of sec.80G of the IT Act. In view of the above, the present application in Form No.10AB for registration u/sec.80G is herewith rejected”. From the perusal of the order of the learned CIT(E), it is clear that, the learned CIT(E) has passed a routine order in a casual manner and has not adjudicated the matter on merits. Further, the learned CIT(E) has not examined the activities of the assessee-trust and also not considered the documentary evidences filed by the assessee- trust in support of it’s contention and rejected the application in a casual manner without considering relevant 5 ITA.No.354/Hyd./2025 details, which is evident from the order of the learned CIT(E) itself. We are, therefore, of the considered view that, the matter needs to be remitted back to the file of learned CIT(E), to give one more opportunity to the assessee-trust to substantiate it’s case. The learned CIT(E) is directed to consider the activities of the assessee-trust right from the date of it’s incorporation and consider the application for recognition u/sec.80G(5) of the Income Tax Act, 1961, after providing adequate opportunity of hearing to the assessee. Accordingly, the grounds of appeal of the assessee-trust are allowed for statistical purposes. 7. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 16.07.2025. Sd/- Sd/- [VIJAY PAL RAO] [MANJUNATHA G] VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad, Dated 16th July, 2025 VBP 6 ITA.No.354/Hyd./2025 Copy to 1. Sri Adilakshmi Kameswari Ammavari Trust, House No.38, Road No.6, Sector-1, Lotus Land Mark, VIJAYAWADA. PIN – 520 003. Andhra Pradesh. 2. The Commissioner of Income Tax (Exemption), Aayakar Bhavan, Basheerbagh, Hyderabad – 500 004. 3. The DR ITAT “B” Bench, Hyderabad. 4. Guard File. //By Order// //True Copy// "