SRI RAMANARAYANAM KSHETRA ANNA PRASADAM TRUST,VIZIANAGARAM V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD

ITA 10/VIZ/2025

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The case involves Sri Ramanarayanam Kshetra Anna Prasadam Trust, which appealed against the rejection of their application for registration under section 80G of the Income Tax Act, 1961 by the CIT(Exemption), Hyderabad. The Trust argued that their activities are substantial and charitable, contrary to the CIT(Exemption)'s findings. The Tribunal examined the submissions and the objectives of the Trust, concluding that the CIT(Exemption) had not provided a detailed reasoning for the rejection and had overlooked the charitable activities undertaken by the Trust.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315493 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 80G

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM श्री िीरिल्ली दुर्ाा राि,न्याधयक सदस्य एिं श्री एस बालाक ृष्णन, लेखा सदस्य क े समक्ष BEFORE SHRI VEERAVALLI DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.10/VIZ/2025 (निर्धारणवर्ा/ Assessment Year: 2025-26) Sri Ramanarayanam Kshetra Anna Prasadam Trust Srimadramyana Prarangam, Korukonda Road Sarika Village, Vizianagaram – 535004 Andhra Pradesh [PAN: ABDTS9238C] v. CIT(Exemption) Aayakar Bhavan Basheerbagh - 500004 Telangana (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Smt A. Aruna, Advocate राजस्व का प्रतततितित्व/ Department Represented by : Dr.Satyasai Rath, CIT(DR) सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 09.04.2025 घोर्णध की तधरीख/Date of Pronouncement : 13.05.2025 आदेश /O R D E R PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against rejection order by the Learned Commissioner of Income Tax (Exemption), Hyderabad [hereinafter in short “Ld.CIT(E)”] vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1071059010(1) dated 10.12.2024. I.T.A.No.10/VIZ/2025 Sri Ramanarayanam Kshetra Anna Prasadam Trust Page No. 2 2. Briefly stated facts of the case are, assessee has fled an e-application in Form No. 10AB seeking registration under section 80G of the Income-Tax act, 1961 (in short “Act”). Ld.CIT(E) issued Notice to the assessee in respect of proceedings under section 80G(5)(i) of the Act, to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee has submitted some of the details as called for. Subsequently, another notice dated 14.11.2024 was issued to the assessee to submit the full information as per the notices issued. In response, assessee furnished its reply in compliance to the notice issued by the Ld.CIT(E). On considering the submissions of the assessee, Ld. CIT(A) rejected the application and issued Form No.10AD dated 10.12.2024. 3. Aggrieved by the rejection order assessee filed an appeal before us by raising following grounds of appeal: - “1. The Learned Commissioner of Income Tax (Exemptions) ought not to have rejected the application under Form 10AB for renewal of registration u/s 80G of the Act in the facts and circumstances of the case. 2. The reason given by the Ld. CIT(E) that the activities are not substantial is erroneous as the appellant has undertaken substantial charitable activities as per the objects of the trust. 3. The Ld, CIT(E)'s conclusions regarding the assessee are erroneous and in complete contradiction to the facts and evidence placed before him, which facts and evidence the Ld.CIT(E) does not dispute. 4. For these and any other grounds that may be urged at the time of hearing the assessee prays for the Hon'ble Bench to direct the Ld. CIT(E) to grant renewal of registration u/s 80G to the assessee trust. 5. The appellant craves leave to add, alter, amend or delete any of the grounds.” I.T.A.No.10/VIZ/2025 Sri Ramanarayanam Kshetra Anna Prasadam Trust Page No. 3 4. The only issue contested by the assessee is rejection of the Registration u/s 80G, by the Ld.CIT(E). On this issue, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that assessee has filed Form No. 10AB seeking registration under section 80G of the Act and the same was rejected by the Ld.CIT(E) without any speaking order. Ld.AR also submitted that the activities carried out by the Trust are of charitable in nature and therefore pleaded that rejection order may be cancelled. 5. Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] relied on the order of the Ld.CIT(E). 6. We have heard both the sides and perused the material available on record. We observe that Ld.CIT(E) rejected the application of the assessee by observing as under: “3. On perusal of the submission 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.” 7. On perusal of the order of the Ld.CIT(E), we find that the Ld.CIT(E) has not discussed anything except stating that the objectives of the trust does not fall under the charitable nature and rejected the application. After considering the objects of the Trust cited by Ld AR, we consider as per the objects of the Trust, they are carrying out activities of charitable in nature. I.T.A.No.10/VIZ/2025 Sri Ramanarayanam Kshetra Anna Prasadam Trust Page No. 4 The Ld.CIT(E) has casually observed without stating which of the objects are not charitable in nature. Further, the Ld.AR also submitted that the assessee was also granted registration under section 12A of the Act, w.e.f. 01.04.2024. We therefore have no hesitation directing the Ld. CIT(E) to grant Registration under section 80G of the Act to the assessee. Accordingly, appealof the assessee is allowed. 8. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 13th May, 2025. Sd/- (श्री िीरिल्ली दुर्ााराि) (VEERAVALLI DURGA RAO) न्याधयक सदस्य/JUDICIAL MEMBER Sd/- (एस बालाक ृष्णन) (S. BALAKRISHNAN) लेखा सदस्य/ACCOUNTANT MEMBER Dated: 13.05.2025 Giridhar, Sr.PS आदेशकीप्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to :- 1. निर्धाररती/ The Assessee : Sri Ramanarayanam Kshetra Anna Prasadam Trust Srimadramyana Prarangam, Korukonda Road Sarika Village, Vizianagaram – 535004 Andhra Pradesh 2. रधजस्व/ The Revenue : CIT(Exemption) Aayakar Bhavan Basheerbagh - 500004 Telangana 3. The Principal Commissioner of Income Tax 4. नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "