Trust for Army Retirees Entitled to Section 80G Approval | ITAT

Case Details: Fighting first Trust vs. Commissioner of Income-tax (Exemption) - [2025] 175 taxmann.com 456 (Hyderabad-Trib.)

Judiciary and Counsel Details

• Vijay Pal Rao, Vice President & Manjunatha G., Accountant Member
• H. Srinivasulu, Adv. for the Appellant.
• Narender Kumar Naik, CIT-DR for the Respondent.

Facts of the Case

The assessee-trust was registered under the Societies Registration Act to serve the community of serving and retired personnel and their families of the First Battalion. The objects included providing financial assistance to widows, dependent parents, and children of serving and retired personnel, awarding scholarships, supporting education, promoting arts and sports, establishing nursing homes, and supporting similar organisations.

The assessee filed an application in Form No. 10AB seeking registration under section 12AB and approval under section 80G along with all relevant supporting documentary evidence. The Commissioner (Exemption) rejected both applications on the grounds that the assessee had not carried out substantial charitable activities, violating provisions of sections 11 and 12.

ITAT Held

On appeal, the Hyderabad Tribunal held that the assessee-trust was incorporated for a noble cause: to provide services to retired military personnel who could not meet the requirements of their dependent family members.

It was not a case that the assessee-trust had not filed its submissions in response to the notices issued by the Commissioner (Exemption), which was evident from the orders of the Commissioner (Exemption). In response, the assessee-trust furnished all details. The Commissioner (Exemption) rejected the application without considering the documentary evidence furnished by the assessee.

Therefore, the Commissioner (Exemption) was directed to grant registration under section 12AB. Since the approval under section 80G is consequential, the Commissioner (Exemption) was directed to approve section 80G.