VERGAK EDUCATIONA & CHARITABLE TRUST,KANCHIPURAM vs. CIT EXEMPTIONS , CHENNAI

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ITA 2852/CHNY/2026Status: DisposedITAT Chennai12 October 20263 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the reason provided by the Ld. CIT(E) for rejecting the application for approval under Section 80G was unsustainable. The assessee had submitted the required documents, including a trust deed, Form 10AC, prior 80G approval, and financial statements, vide a letter dated February 25, 2026, in response to the notice dated February 24, 2026. Evidence of this submission was found in the paper book. Therefore, the Tribunal set aside the impugned order of the Ld. CIT(E). The application was restored to the file of the Ld. CIT(E) with a direction to consider the evidence filed by the assessee. If deemed necessary, the Ld. CIT(E) was further directed to call for other relevant documents and then decide on the grant of approval under Section 80G in accordance with the law after hearing the assessee. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Vergal Educational & Charitable Trust, filed an appeal against the order of the Learned Commissioner of Income Tax (Exemption) (Ld. CIT(E)), Chennai. The Ld. CIT(E) rejected the trust's application for approval under Section 80G of the Income Tax Act, 1961, on March 30, 2026. The reason cited was the non-submission of all mandatory documents. The assessee had previously obtained provisional registration under Section 12A and regular approval under Section 12AB. The trust contended that it had uploaded all required documents, including a prior 80G approval, trust deed, Form 10AC, audit reports, and financial statements for specific assessment years, in response to a show cause notice. The assessee provided evidence of this submission.

What were the issues?

1. Whether the Ld. CIT(E) was justified in rejecting the assessee's application for approval under Section 80G of the Income Tax Act, 1961, on the grounds that mandatory documents were not filed. Assessee's Contention: The assessee argued that it had uploaded all the documents requested by the Ld. CIT(E), including the 80G approval granted prior to April 1, 2021, as required. They submitted a copy of the trust deed, Form 10AC for AY 2022-23 to AY 2026-27, an 80G approval dated December 17, 2008, and audit reports and financial statements for FY 2024-25, 2023-24, and 2022-23. They also provided an acknowledgement evidencing the submission of their response, asserting that the Ld. CIT(E)'s allegation was incorrect. Revenue's Contention: The judgment does not record any specific contentions made by the revenue before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & MS. PADMAVATHY. S

Hearing: 28.08.2026Pronounced: 12.10.2026

आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), (hereinafter referred to as ‘Ld. CIT(E)’), Chennai, dated 30.03.2026 rejecting the approval u/s.80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

ITA 2852 /Chny/2026 Vergal Educational & Charitable Trust :: 2 :: 2. Assessee-Trust is noted to have been granted provisional registration u/s.12A on 24.09.2021 from AY 2022-23 to AY 2026-27. Thereafter regular approval was granted u/s.12AB from AY 2022-23 to AY 2026-27 vide order dated 10.03.2026. The application filed on 29.09.2025 seeking 80G approval has been rejected on the ground that assessee didn’t file all the mandatory documents along with the application. Before us the assessee claims to have uploaded all the documents sought by the Ld. CIT(E) including the 80G approval granted prior to 01.04.2021 as required by show cause notice dated 24.02.2026.

3.

The assessee before us has submitted that it has filed copy of trust- deed, order for registration in Form 10AC for AY 2022-23 to AY 2026-27, approval under 80G dated 17.12.2008 and copy of the audit report, income and expenditure account and balance sheet for FY 2024-25, 23-24 and 2022-23 vide letter dated 25.02.2026 found placed at Page 3 to 5 of the Paper Book (PB). The assessee has also filed the acknowledgement evidencing submission of the response along with annexure found placed at Page 1 to 2 of the PB, hence, per-se the assessee assertion that the allegation of the CIT(E) that the assessee didn’t file the relevant documents called for by him vide letter dated 24.02.2026 is incorrect. Rather, we find that the aforesaid documents were filed by the assessee vide covering letter dated 25.02.2026 pursuant to the notice dated 24.02.2026 of Ld. CIT(E) and the acknowledgement evidencing uploading

ITA 2852 /Chny/2026 Vergal Educational & Charitable Trust :: 3 :: of the same is found at Page No.1 of the PB. Hence, the alleged reason assigned by the Ld. CIT(E) to reject the application for approval u/s 80G cannot be countenanced; and therefore, we set aside the impugned order of the Ld. CIT(E) and restore the application back to the file of Ld. CIT(E) with a direction to consider the evidences filed by the assessee, and if found necessary, call for other relevant documents and thereafter to decide grant of approval under 80G of the Act in accordance to law after hearing the assessee.

4.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced on the 12th day of October 2026, in Chennai.

Sd/- Sd/- (प�ावती .एस) (एबी टी. वक�) (PADMAVATHY. S) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �या�यक सद�य/JUDICIAL MEMBER चे�नई/Chennai, �दनांक/Dated: 12th October, 2026. YS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF Digitally signed YASHVI by YASHVIR SINGH R SINGH Date: 2026.10.16 11:26:57 +05'30'

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