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Facts
The assessee's application for registration under Section 80G of the Income-tax Act, 1961 was rejected by the CIT (Exemptions). The assessee contended that the rejection was due to an inadvertent error in Form No. 10, where the nature of activity was mentioned as 'charitable cum religious' instead of 'public charitable', and sought an opportunity to provide evidence.
Held
The Income Tax Appellate Tribunal set aside the order of the CIT (Exemptions) and remitted the matter back for a fresh decision. The CIT (Exemptions) was directed to reconsider the application after taking into account documentary evidence supporting the assessee's claim of public charitable activity.
Key Issues
Whether the CIT(Exemptions) erred in rejecting the assessee's Section 80G application without allowing it to rectify an inadvertent error in classifying its activities as 'charitable cum religious' instead of 'public charitable'.
Sections Cited
80G
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Income Tax Appellate Tribunal, MUMBAI BENCH “E” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
This appeal by the assessee is directed against order dated 28.10.2024 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai wherein he has rejected the application of the assessee for registration u/s 80G of the Income-tax Act, 1961 ( in short the Act). The grounds raised by the assessee are . The grounds raised by the assessee are . The grounds raised by the assessee are reproduced as under: reproduced as under:
The Ld. CIT(Exemptions) has erred in law and in facts in The Ld. CIT(Exemptions) has erred in law and in facts in The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in Form No. 10AD rejecting the passing the order in Form No. 10AD rejecting the passing the order in Form No. 10AD rejecting the application filed by the appellant seeking approval u/s. application filed by the appellant seeking approval u/s. application filed by the appellant seeking approval u/s. 80G of the Act which 80G of the Act which is invalid and bad in the eyes of is invalid and bad in the eyes of law.
The Ld. CIT(Exemptions) has erred in law and in facts in The Ld. CIT(Exemptions) has erred in law and in facts in The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in violation of principles of natural passing the order in violation of principles of natural passing the order in violation of principles of natural justice. justice.
3. The Ld. CIT(Exemptions) has erred in law and in facts in The Ld. CIT(Exemptions) has erred in law and in facts in The Ld. CIT(Exemptions) has erred in law and in facts in holding that the appellant has made vi holding that the appellant has made violation of olation of conditions stipulated u/s 80G of the Act and thereby conditions stipulated u/s 80G of the Act and thereby conditions stipulated u/s 80G of the Act and thereby rejecting approval u/s 80G of the Act. rejecting approval u/s 80G of the Act. 4. The Ld. CIT(Exemptions) has erred in law and facts by The Ld. CIT(Exemptions) has erred in law and facts by The Ld. CIT(Exemptions) has erred in law and facts by holding that the appellant's activities are of a religious holding that the appellant's activities are of a religious holding that the appellant's activities are of a religious cum cum cum charitable charitable charitable nature nature nature which which which is is is incorrect incorrect and bad in law. 2. We have heard rival submissions of the parties and perused We have heard rival submissions of the parties and perused We have heard rival submissions of the parties and perused the relevant materials on record the relevant materials on record. Before us, the Ld. counsel for the . Before us, the Ld. counsel for the assessee submitted that while filing the Form No. 10 i.e. Form assessee submitted that while filing the Form No. 10 i.e. Form assessee submitted that while filing the Form No. 10 i.e. Form prescribed for application u/s 80G prescribed for application u/s 80G, due to inadvertent error the advertent error the nature of the activity nature of the activity was mentioned as charitable cum religious was mentioned as charitable cum religious instead of public charitable. The Ld. counsel submitted that letter instead of public charitable. The Ld. counsel submitted that letter instead of public charitable. The Ld. counsel submitted that letter dated 02.09.2024 was filed before the concerned authority dated 02.09.2024 was filed before the concern dated 02.09.2024 was filed before the concern explaining such inadvertent error however sam explaining such inadvertent error however same has not been e has not been considered. The Ld. counsel for the assessee prayed for granting considered. The Ld. counsel for the assessee prayed for granting considered. The Ld. counsel for the assessee prayed for granting one more opportunity to demonstrate with evidence one more opportunity to demonstrate with evidences s.
2.1 In the facts and circumstances of the case and in view of In the facts and circumstances of the case and in view of In the facts and circumstances of the case and in view of undertaking by the trustee on behalf of the trust to explain the undertaking by the trustee on behalf of the trust to explain undertaking by the trustee on behalf of the trust to explain activity of the assessee being in the nature of public charitable activity of the assessee being in the nature of public charitable activity of the assessee being in the nature of public charitable trust, we feel it appropriate to set aside the order of the Ld. e feel it appropriate to set aside the order of the Ld. e feel it appropriate to set aside the order of the Ld. CIT(Exemptions) and restore the matter back to him for deciding CIT(Exemptions) and restore the matter back to him for deciding CIT(Exemptions) and restore the matter back to him for deciding afresh after taking into account the documentary evidences in afresh after taking into account the documentary evidence afresh after taking into account the documentary evidence support of public charitable activity support of public charitable activity. The grounds of appeal of the The grounds of appeal of the assessee are accordingly allowed for statistical purposes. assessee are accordingly allowed for statistical purposes. assessee are accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.