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Facts
The assessee filed an appeal against the order of the CIT(Exemption) rejecting its application for approval under Section 80G of the Act for the Assessment Year 2025-26. The CIT(E) rejected the application citing failure to satisfy the genuineness of charitable activities despite opportunities.
Held
The Tribunal noted that while the CIT(E) observed lack of submissions, the assessee had provided some details. Therefore, in the interest of justice, the matter was remanded back to the CIT(E) to reconsider the issues afresh after examining all evidence.
Key Issues
Whether the CIT(E) erred in rejecting the application for approval under Section 80G without proper consideration of submitted evidence, and if an opportunity for fresh consideration is warranted.
Sections Cited
80G
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Income Tax Appellate Tribunal, DELHI BENCH “B-FRIDAY”, NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI SHAMIM YAHYA, ACCOUTANT MEMBER
ORDER PER MAHAVIR SINGH, VP : This appeal by the assessee is directed against the order of the CIT(Exemption), Delhi dated 27.03.2025 pertaining to Assessment year 2025- 26.
In this case, an application was filed by the Assessee, requesting therein for grant of early hearing in the main appeal. Considering the reasons in the application and arguments of the learned counsel for the assessee, an early hearing in the matter is granted for today itself and accordingly the appeal is heard, for which Ld. DR has no objection.
During the hearing, Ld. AR has submitted that no proper opportunity was given to the assessee for canvassing its case, as the CIT(E) issued final notice on 18.02.2025, granting only 6 days for compliance and appellant’s submission were not considered. It was further submitted that the CIT(E) failed to appreciate the appellant’s audit reports, project details, and beneficiary testimonials proving charitable operations. However, Ld. CIT(E) noted that assessee has failed to satisfy the genuineness of charitable nature of its activities, therefore, Ld. CIT(E) rejected the approval u/s. 80G of the Act.
We have heard both the parties and perused the records. We note that Ld. CIT(E), Delhi, has noted that appellant has not made submissions despite affording opportunity and has failed to satisfy the genuineness of charitable nature of its activities. However, as per record, the assessee has submitted the details, but perhaps the same was not complete as per the requirement of the Ld. CIT(E), hence, Ld. CIT(E) has rejected the application for grant of approval u/s. 80G of the Act. Therefore, in the interest of justice, the matter is remanded back to the file of the Ld. CIT(E) to consider the issues afresh by considering all the evidences / documents. However, Applicant is directed to furnish the complete details/ evidences before the Ld. CIT(E) so as to prove