Ujwal Foundation Vs CIT (Exemption) (ITAT Hyderabad)
Hyderabad, June 6, 2025: The Income Tax Appellate Tribunal (ITAT) Hyderabad bench has set aside orders from the Commissioner of Income Tax (Exemption) (CIT(E)), Hyderabad, which had rejected the applications of Ujwal Foundation for approval under Section 80G and registration under Section 12AB of the Income Tax Act, 1961. The tribunal has remanded both matters back to the CIT(E) for fresh adjudication, emphasizing the need to consider proposed charitable activities, a principle established by the Supreme Court.
Ujwal Foundation, established via a Trust Deed on December 11, 2021, states its primary objectives as providing education and medical relief to the poor. The foundation initially secured provisional registration under Section 12A of the Act on January 15, 2022, following an application filed on January 8, 2022. Subsequently, on January 7, 2024, the assessee submitted an application in Form 10AB seeking final registration under Section 12AB, within the extended time limit granted by the Central Board of Direct Taxes (CBDT). This application, along with a separate application for 80G approval, was rejected by the CIT(E) through orders dated December 9, 2024, and December 11, 2024, respectively.
The primary reason cited by the CIT(E) for the rejection was the purported lack of substantial charitable activities carried out by the assessee trust, which was deemed a violation of Sections 11 and 12A of the Income Tax Act, 1961. The CIT(E) did not dispute the charitable nature of the trust’s stated objects.
