SOCIAL REFORMS CHARITABLE ORG.,JAMMU vs. EXEMPTIONS CIRCLE 1, CHD, CHANDIGARH

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ITA 505/CHANDI/2026Status: DisposedITAT Chandigarh21 July 2026AY 2025-20262 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the approval could not be denied solely for filing under the wrong clause, and the assessee was not given an opportunity to explain its case. Therefore, the matter was restored to the CIT(Exemptions) for fresh consideration under the correct clause, adhering to the principles of natural justice.

What were the facts?

The assessee's application for approval under Section 80G was rejected by the CIT(Exemptions) on the grounds that it was filed under the wrong clause. The assessee argued that the rejection was made without a proper show-cause notice and that its genuineness was established by its registration under Section 12AB.

What were the issues?

Whether the rejection of an application for 80G approval is valid when filed under a wrong clause without affording the assessee an opportunity to be heard and explain its case.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH VIRTUAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.505/CHANDI/2026 Social Reforms Charitable Org. CIT (Exemptions) H. No. 88, Street No. 4 C.R. Building बनाम/ Vs. Shakti Nagar, Jammu Chandigarh – 160017 Jammu and Kashmir – 180005 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AABAS-3459-F (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Ms. Gunjan (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Smt. Kusum Bansal (Pr. CIT) - Ld. DR सुनवाईकीतारीख/Date of Hearing : 16-07-2026 घोषणाकीतारीख /Date of Pronouncement 21-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application as filed by the assessee seeking approval u/s 80G vide impugned order dated 03.02.2026 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Upon perusal of impugned order, it could be seen that the approval has been denied merely on the ground that the application was filed under wrong clause which was not applicable to the case of the assessee. Apparently, the assessee has not been show-caused before taking such an action.

The Ld. AR also stated that the assessee has been granted registration u/s 12AB(1)(b) which prove the genuineness of the assessee-trust. 2. We are of the considered opinion that the approval could not be denied merely because the application was preferred under wrong clause. Moreover, the assessee has not been afforded any opportunity to explain its case. Therefore, keeping in mind the principles of natural justice, we accept the prayer of Ld. AR and restore the issue of approval back to Ld. CIT(E) for de novo consideration under correct clause as applicable to the assessee with a direction to the assessee to plead and prove its case forthwith. 3. The appeal stands allowed for statistical purpose. Order pronounced on 21st July, 2026 -Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 21-07-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR ITAT CHANDIGARH

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