HIMA SHANKARAM CHARITABLE TRUST,VISAKHAPATNAM vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD

In the above cited appeal, the Trust was granted approval from A.Y.2022-23 to 2026-27 and the assessee claims that the Trust is carrying on its genuine charitable activities as per the objects of the Trust including relief to the poor, education and medical relief regularly from 2019 onwards. The grievance of the appellant Trust is that the Ld.CIT(E) is not justified in rejecting the registration subsequently. The appellant is aggrieved as it was not given proper opportunity of being heard and even the order of rejection of registration of the Trust was never served on the assessee and the same violates the principles of natural justice. During the hearing proceedings before the ITAT, the Ld.AR of the appellant has stated that the Trust was asked to furnish copy of registration, evidencing registration prior to 01.04.2021. The Ld.CIT(E) held that the registration granted earlier from A.Y.2022-23 to 2026-27 is invalid registration only for the reason that a copy evidencing registration prior to 01.04.2021 was not submitted before him, despite opportunity is given. As mentioned above, the Ld.AR has also submitted that they are not given an opportunity of being heard by the Commissioner before rejecting the registration u/s 80G of the Act. The Ld.AR has submitted that the Trust was given registration from A.Y.2022-23 to 2026-27 as mentioned above and hence there is no registration prior to A.Y.2022-23 and the registration certificate prior to A.Y.2022-23 could not be furnished. If an opportunity of being heard is given by the Ld.CIT(E), they

Per contra, the Ld.DR relied on the order of Ld.CIT(E).

Heard both sides. After considering the arguments and written submissions of the Ld.AR of the appellant and after perusal of the order for registration in Form 10AD of Ld.CIT(E), it is observed that the order of rejection issued by the Ld.CIT(E) is incorrect, because neither an opportunity of being heard was given to the appellant Trust before rejecting the same nor they were allowed to submit reasoning for not filing the registration certificate prior to 01.04.2021. The main submission of the appellant Trust is that the assessee was given registration from A.Y.2022-23 to 2026-27 only and prior to that, there was no registration certificate and hence the same could not be submitted to the Ld.CIT(E). From the written submissions filed by the Ld.AR of the appellant, it is observed that there is only one donor, Mr.G.S.Raju and if this approval was cancelled unilaterally, he may not give financial support to the Trust. The argument of the Ld.AR of the appellant Trust appears to be genuine, because, the main donor is a physically challenged person and still he is donating maximum amount to this Trust. Based on the same only, the Trust is running its welfare programmes and if the certificate u/s 80G is not granted, all the activities of the Trust will come to a grinding halt. Therefore, the Bench decides that the rejection of application without affording an opportunity to rectify the error, if any, is not in consonance with the principles of natural justice. Hence, the Bench decides to set aside the impugned order of the Ld.CIT(E) and restore the

In the result, appeal filed by the assessee is allowed for statistical purpose.