2025 (2) TMI 607 - AT - Income Tax

Registration under section 12AB and 80G approval directed for society; waste management and public education held charitable

Maati Foundation Versus The Commissioner of Income Tax (Exemption), Hyderabad

Maati Foundation Versus The Commissioner of Income Tax (Exemption), Hyderabad - TMI The issues presented and considered in the judgment by the Appellate Tribunal ITAT Hyderabad are as follows:1. Whether the assessee's society qualifies for registration under section 12AB of the Income Tax Act, 1961.2. Whether the assessee's society is eligible for approval under section 80G of the Income Tax Act, 1961.Issue-wise detailed analysis:The Appellate Tribunal considered the facts of the case where the assessee, a trust named MAATI Foundation, was formed with the objective of promoting waste prevention, recycling, and environmental education. The trust applied for registration under section 12AB and approval under section 80G of the Income Tax Act, 1961. The CIT(E) rejected both applications, stating that the activities of the trust were commercial in nature and not in compliance with the relevant provisions.The tribunal heard arguments from both parties. The counsel for the assessee argued that the trust's activities were aimed at protecting the environment and involving public participation in waste management. The counsel contended that the CIT(E)'s decision was not based on the factual matrix of the case and should be overturned. On the other hand, the Departmental Representative (DR) supported the CIT(E)'s decision, emphasizing the lack of substantiating documents from the assessee.The tribunal found that the CIT(E) had issued vague orders without providing sufficient reasons for rejecting the applications. It acknowledged the importance of the trust's activities in educating the public and restoring ecological balance. The tribunal noted that it is the duty of every citizen to protect and improve the natural environment. Therefore, it directed the CIT(E) to grant registration under section 12AB and approval under section 80G to the trust. The tribunal emphasized the need to encourage such activities for the betterment of future generations and the preservation of the environment.Significant holdings:The tribunal held that the trust's activities align with the fundamental duty of citizens to protect the environment, as enshrined in the Constitution of India. It emphasized the importance of maintaining ecological balance and supporting initiatives that promote environmental sustainability. The tribunal concluded that the CIT(E)'s decision to reject the trust's applications was not justified, and therefore directed the granting of registration and approval under the relevant sections of the Income Tax Act, 1961.In conclusion, the Appellate Tribunal ITAT Hyderabad allowed the appeals of the assessee, directing the grant of registration and approval sought under sections 12AB and 80G of the Income Tax Act, 1961.