Historical Cars Association of India Vs CIT (Exemption) (ITAT Chennai)
ITAT Chennai held that the activity of conducting historic cars rally does not fit into the definition of charitable purpose as defined under section 2(15) of the Act. Also held that when there is no registration under section 12AB of the Act, no approval under section 80G of the Act could be granted.
Facts- The assessee filed an application dated 15.12.2023 in Form 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval u/s. 80G(5)(iv)(B) of the Income Tax Act, 1961. As CIT(E) noticed some inconsistencies in the details submitted by the assessee, a show-cause notice was issued to the assessee why the application in Form 10AB should not be rejected. CIT(E) held that conducting historic cars rally does not fit into the definition of charitable purposes as defined under section 2(15) of the Act. Assessee’s application under Form 10AB seeking regular registration under section 12AB of the Act was rejected and in view of the same, the present application Form 10AB seeking approval under section 80G of the Act was rejected.
Conclusion- Held that the activity of the assessee in conducting historic cars rally etc. does not fit into the definition of charitable purpose as defined under section 2(15) of the Act as also noted by the ld. CIT(E) and before us, nothing was brought on record to substantiate the claim of the as-sessee. Further, when there is no registration under section 12AB of the Act, no approval under section 80G of the Act could be granted. Therefore, in the absence of registration under section 12AB of the Act, and also with the reasons recorded by the ld. CIT(E), we find no infirmity in the or-der of the ld. CIT(E) of rejecting application in Form 10AB seeking approval under section 80G of the Act. Thus, the grounds raised by the assessee are dismissed.
