NENI KAVAR BAI CHORDIA TRUST,CHENNAI vs. CIT (EXEMPTION), , CHENNAI

At the very outset, we notice that the CIT(E) has rejected the applications filed by the assessee seeking registration u/s.12AB of the Act and approval u/s.80G of the Act, by holding that the

Aggrieved by the orders of the CIT(E) rejecting the assessee’s applications for registration u/s.12AB and approval u/s.80G of the Act, the assessee has filed the present appeals before the Tribunal. Before us, the Ld. AR submitted that the CIT(E) rejected the application for registration u/s.12AB on the ground that the assessee-trust had not carried out any charitable activities. Consequently, the application for approval u/s.80G was also rejected. The Ld. AR submitted that the assessee-trust was established as a public charitable trust on 19.02.1979 with charitable objects. However, the erstwhile Managing Trustee expired on 09.06.2021 and, as the trustees were unable to appoint a new Managing Trustee, the trust could not effectively carry out its activities or apply its funds during the period from 01.04.2023 to 31.03.2025. Subsequently, a new Managing Trustee was appointed with effect from 01.04.2026. The Ld. AR, therefore, prayed that one more opportunity be granted to the assessee-trust before the CIT(E) to substantiate its charitable activities and satisfy the statutory requirements.

We have heard the rival submissions and perused the material available on record. We find that the CIT(E) rejected the assessee’s application for registration u/s.12AB of the Act on the ground that the assessee-trust had not carried out any charitable activities. Consequently, the application for approval u/s. 80G was also rejected. The Ld. AR submitted that the assessee-trust was established as a public charitable trust on 19.02.1979 with charitable objects and that, following the demise of the erstwhile Managing Trustee on 09.06.2021, the trustees could not appoint a new Managing Trustee, resulting in the trust being unable to effectively carry out its activities during the period from 01.04.2023 to 31.03.2025. It was further submitted that a new Managing Trustee was appointed with effect from 01.04.2026. Considering the above facts and in the interest of justice, we are of the view that the assessee deserves one more opportunity to substantiate its charitable activities before the CIT(E). Accordingly, the impugned orders are set aside and the matters are restored to the file of the CIT(E) for fresh adjudication in accordance with law. The CIT(E) shall afford reasonable opportunity of hearing to the assessee and examine the activities and supporting evidences furnished by the

In the result, both the appeals filed by the assessee are allowed for statistical purposes.