SRI GANGA CHARITABLE TRUST,HYDERABAD V. CIT (EXEMPTIONS), HYDERABAD

ITA 203/HYD/2025

AI Insights

Sri Ganga Charitable Trust, established on August 16, 2022, applied for registration under Section 80G of the Income Tax Act, 1961 using Form 10AB. The Trust's objectives include supporting orphans and the elderly, providing educational facilities, conducting health camps, and promoting national integration. The Commissioner of Income Tax (Exemption) rejected the application, citing insufficient evidence of substantial charitable activities. The Trust appealed this decision, arguing that it had provided adequate evidence of its activities, including photographs and documentation of free food distribution to the public. The Tribunal found that the CIT(E) had not properly considered these submissions and directed the registration of the Trust under Section 80G.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314493 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. NARMADA
• Assessee Lawyers: NITIN RANDER
• Keywords: Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “B” BENCH: HYDERABAD BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA.No.203/Hyd./2025 [U/sec.80G of the Income Tax Act, 1961] Sri Ganga Charitable Trust, Secunderabad. PIN – 500 062. Telangana. PAN ABETS7165B vs. The Commissioner of Income Tax (Exemption), Hyderabad – 500 004. Telangana. (Appellant) (Respondent) For Assessee : CA Nitin Rander For Revenue : MS. M. Narmada, CIT-DR Date of Hearing : 01.05.2025 Date of Pronouncement : 06.05.2025 ORDER PER MANJUNATHA G. : This appeal has been filed by the Assessee-Trust against the order dated 22.10.2024 of the learned CIT(E) in rejecting the application filed by the assessee trust in Form- 10AB for registration u/sec.80G of the Income Tax Act, 1961 [in short “the Act”]. 2 ITA.No.203/Hyd./2025 2. Briefly stated facts of the case are that, the assessee-trust is a charitable institution formed on 16.08.2022. The primary objects of the Trust are that, (i) To construct orphan hostel building, maintain, help orphans, old age home, etc., (ii) To deliver educational facilities KG to PG to orphan and poor people. (iii) To conduct health camps for poor and weak people (iv) To conduct environmental support activity urban and rural of Telangana State (v) To conduct seminars with qualified people for benefit of unemployed youth and (vi) National integration and other related activities. The assessee-trust is carrying-out it’s charitable activities since the date of it’s inception i.e., dated 16.08.2022. Therefore, the assessee-trust has filed an application in Form No.10AB seeking for registration u/sec.80G of the Act. The learned CIT(E) had called for certain information from the assessee-trust. In response, the assessee-trust had also furnished relevant information / documents. However, the learned CIT(E) being not satisfied with the submissions made by the appellant-trust, had rejected the application in Form-10AB for registration 3 ITA.No.203/Hyd./2025 u/sec.80G of the Act on the ground that no substantial activities are being carried-out by the appellant-trust. 3. Aggrieved by the order of the learned CIT(A), the assessee trust is now in appeal before the Tribunal. 4. CA Nitin Rander, Learned Counsel for the Assessee, submitted that, the learned CIT(E) had simply rejected the application of the appellant trust filed in Form- 10AB for registration u/sec.80G of the Act, without appreciating the fact that the assessee has filed evidences to prove that assessee is carrying-out charitable activities by providing free food to general public and in this regard, he filed relevant photographs and evidences. The Learned Counsel for the Assessee further submitted that, the learned CIT(E) has rejected the application for registration of the assessee trust u/sec.80G of the Act in a very casual manner without considering the objectives of the assessee trust and activities carried-out during the year. In support of his contentions, he drew the attention of the Bench with respect to the observations of the learned CIT(A) in para-3 of the order wherein the learned CIT(E) observed that, “no 4 ITA.No.203/Hyd./2025 substantial charitable activities are being carried out by the assessee trust, which is in violation of provisions of sec.80G of IT Act, 1961. In light of the above facts, the present application in Form 10AB for registration u/sec.80G is herewith rejected”. He submitted that the appellant-trust is providing free food to the poor/general public and, therefore, a direction may be given to the learned CIT(E) for registration of the appellant-trust u/sec.80G of the Act as the learned CIT(E) has not disputed the very fact of any violation of provisions of sec.80G(v) of the Act. 5. MS. M. Narmada, learned CIT-DR, on the other hand, supporting the order of learned CIT(E) submitted that, the assessee-trust has made the application for registration in Form-10AB for registration u/sec.80G of the Act. She 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 trust u/sec.80G of the Act and that the order of the learned 5 ITA.No.203/Hyd./2025 CIT(E) is in accordance with law. She accordingly submitted that the order of the learned CIT(E) be confirmed. 6. We have heard both the parties, perused the material on record and the orders of the authorities below. We find that, admittedly, the assessee trust has made an application in Form-10AB for registration u/sec.80G of the Act. However, on perusal of the order of the learned CIT(E), we find that, the learned CIT(E) has simply rejected the application filed by the assessee trust in Form-10AB for registration u/sec.80G of the Act, without considering the documentary evidences filed by the assessee trust which is evident from para-3 of his order itself where there were no discussion about the submissions made by the assessee trust and the reasons for decision by the learned CIT(E) for rejection of registration of assessee trust u/sec.80G of the Act or the objections of the assessee trust has been discussed. Further, the learned CIT(A) dismissed the application filed by the assessee in a casual manner by repeating or copying the contents from some other order which is evident from the findings in para-3 of learned 6 ITA.No.203/Hyd./2025 CIT(E)’s order where the learned CIT(E) observed that, no substantial charitable activities are being carried out by the assessee trust, which is in violation of provisions of sec.80G of IT Act, 1961. In light of the above facts, the present application in Form 10AB for registration u/sec.80G is herewith rejected. Further, we find that the learned CIT(E) has not disputed the fact that the assessee has not violated the provisions of sec.80G(v) of the Act. Further, the assessee trust has carried-out it’s activities in accordance with it’s objectives, which is evident from relevant evidences and photographs submitted before the authorities. Further, the learned CIT(E) ignored 12AB registration after satisfying with objects and activities. Therefore, in our considered view, the learned CIT(E) ought to have grant registration to the assessee trust. We, therefore, direct the learned CIT(E) to grant registration u/sec.80G of the Act. Accordingly, the grounds of appeal of the assessee trust is allowed. 7. In the result, appeal of the assessee is allowed. 7 ITA.No.203/Hyd./2025 Order pronounced in the open Court on 06.05.2025. Sd/- Sd/- [RAVISH SOOD] [MANJUNATHA G] JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 06th May, 2025 VBP Copy to 1. Sri Ganga Charitable Trust, Plot No. LIG B274, NR Annapuram Community Hall, Dr. AS Rao Nagar, ECIL, Secunderabad – 500 062. Telangana. 2. The Commissioner of Income Tax (Exemptions), Aaykar Bhavan, Opp. L.B. Stadium, Basheerbagh, Hyderabad- 500 004. Telangana. 3. The DR ITAT “B” Bench, Hyderabad. 4. Guard File. /By Order// //True Copy// "