THE RATTAN FOUNDATION,CHANDIGARH vs. ITO EXEMPTIONS WARD CHANDIGARH, CHANDIGARH

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ITA 634/CHANDI/2026Status: DisposedITAT Chandigarh06 July 2026AY 2027-282 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue back to the CIT(Exemptions) for de novo consideration under the correct clause. This was done to uphold principles of natural justice and allow the assessee to prove its case.

What were the facts?

The assessee's application for approval under Section 80G(5)(ii) was rejected by the CIT(Exemptions) on the grounds that it was filed under the wrong clause. The assessee argued this was not confronted, and they had received approval in prior years.

What were the issues?

Whether the rejection of approval under Section 80G(5)(ii) was justified on procedural grounds without proper opportunity to the assessee. The applicability of the correct clause for approval.

Which sections of the Income-tax Act were involved?

Section 80G(5)(ii)

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 PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.634/CHANDI/2026 The Rattan Foundation CIT (Exemptions) H.No.16, Sec-4, Airforce High Ground बनाम/ Vs. Central Revenue Building SO Chandigarh - 160004 Himalaya Marg, Chandigarh -17 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AAETT-7351-F (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Sh. Prikshit Aggarwal (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Smt. Geetinder Mann (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 01-07-2026 घोषणाकीतारीख /Date of Pronouncement 06-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking approval u/s 80G(5)(ii) vide impugned order dated 19.02.2026 of Ld. Commissioner of Income Tax (Exemptions), 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 on the ground that the application was preferred under wrong clause. The Ld. AR stated that the said fact was never confronted to the assessee whereas the assessee was granted such approval in earlier years.

The Ld. CIT-DR fairly stated that the application could be considered under correct clause and therefore, the matter may be restored back to approving authority. 2. Keeping in mind the principles of natural justice, we accept the prayer of the assessee 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 06th July, 2026

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 06-07-2026 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

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