Case Law Details
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.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against the order dated 28.06.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai.
2. We find no representation on behalf of the assessee nor any application filed seeking adjourn-ment. Thus, the assessee called absent and set exparte. We proceed to decide the appeal on merits after hearing the ld. DR basing on the material available on record.
3. The assessee by name, Historical Cars Association of India, filed an application dated 15.12.2023 in Form 10AB under Rule 11AA of the Income Tax Rules, 1962 seeking approval under section 80G(5)(iv)(B) of the Income Tax Act, 1961 [“Act” in short]. The ld. CIT(E) requested the assessee to furnish Note on activities and Annual Accounts/Financial statements, certified copies of important documents for verification. The ld. CIT(E) noticed some inconsistencies in the details submitted by the assessee. The ld. CIT(E) issued show-cause notice to the assessee why the application in Form 10AB should not be rejected for the reasons, which are reflecting in pages 4 and 5 of the impugned order. According to the ld. CIT(E), the assessee filed explanation contending that the preservation of monuments or places or objects of artistic or historic interest can be correlated and linked with the objects preservation like vintage cars which are over and above 50-100 years old comes under sporting activity. The ld. CIT(E) discussed about the ancient monuments at page 6 of the impugned order and held that conducting historic cars rally does not fit into the definition of charitable purpos-es as defined under section 2(15) of the Act . Further, the ld. CIT(E) observed that the assessee’s ap-plication 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.
4. Before us, nothing was brought on record challenging the action of the ld. CIT(E) in rejecting the application for seeking approval under section 80G of the Act and also the status of rejection regis-tration under section 12A/12AA/12AB of the Act. On perusal of the impugned order, we find that the assessee itself contended that preservation of monuments or places or objects of artistic or his-toric interest are fall under the definition of charitable purpose, but, however, nothing was brought on record before the ld. CIT(E) in support of the same. The ld. CIT(E) discussed the relevant provi-sions as inserted by Finance (No.2) Act, 2009 that “ancient monument” means any structure, erec-tion or monument, or any tumulus or place of interment, or any cave, rock-sculpture, inscription of monolith, which is of historical, archaeological or artistic interest, or any remains thereof and in-cludes:
(a) the site of an ancient monument;
(b) such portion of land adjoining the site of an ancient monument as may be required for fencing or covering in or otherwise preserving such monument; and
(c) the means of access to and convenient inspection of an ancient monument – The Ancient Monuments Preservation Act, 1904.
5. However, we find 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 assessee. 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.
6. In the result, the appeal filed by the assessee is dismissed.
Order pronounced on 13th November, 2024 at Chennai.
Author Bio
