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Facts
The assessee trust applied for approval under Section 80G of the Income Tax Act. The CIT(Exemption) rejected the application citing non-appearance on hearing dates and failure to submit necessary documents, including audit reports and proof of expenditure.
Held
The Tribunal observed that the assessee claimed to have appeared on one of the hearing dates and submitted documents. Considering the interest of justice, the Tribunal decided to remit the case back to the CIT(Exemption) for a fresh decision.
Key Issues
Whether the CIT(Exemption) was justified in rejecting the Section 80G approval application without granting a proper opportunity for the assessee to present all required documents and clarifications.
Sections Cited
80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B’’ BENCH: BANGALORE
Before: SHRI PRASHANT MAHARISHI & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
This appeal at the instance of the assessee is directed against the order of ld. CIT(Exemption) dated 21.6.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1077316446(1) rejecting the approval u/s 80G of the Income Tax Act, 1961 (in short “the Act”).
The assessee has raised the following grounds of appeal: “The CIT (Exemption) passed order cancelling our 80G, citing reason, we have not appeared hearing on 4.6.2025, 12.6.2025 notice dated 28.5.2025, 5.6.2025 we didn’t appear on 4.6.2025 as the notice hard copy received by us after the due date. Also, we had attended the hearing on 12.6.2025, which is not mentioned in the cancellation order by the officer. We request to consider facts, the application submitted in time, on 28.12.2024 with relevant documents, in fact waited more than 6 months for opportunity. Orders passed with 2 opportunities only. The officer asked for documents but with out that order has been Universe Art Foundation, Bengaluru Page 2 of 4 passed on 21.6.2025. The trust every year uplifting of Indian artists and extinct art forms, organizing free health camps for underprivilege people and encouraging all Indian extinct classical art and all other related with honorarium. Kindly consider our grounds and provide opportunity for natural justice.
The brief fact of the case are that the assessee trust is incorporated on 13/09/2013 vide registration no. 590/13-14 & the object of the trust are Education & Medical relief. As observed by the ld. CIT(E), the assessee Trust had made an application in form 10AB on 28.12.2024 for granting approval u/s 80G(5) of the Act. Thereafter, the assessee was granted opportunity of being heard vide notice dated 28.5.2025, however, the assessee did not respond to the said notice. Further, a show cause notice dated 5.6.2025 was issued giving one last opportunity to assessee to represent the case by fixing the hearing on 12-06-2025. However, the ld. CIT(Exemption) noted that till the passing of order, the assessee had not furnished the details completely. The ld. CIT(Exemption) was of the opinion that assessee was mandated to submit necessary documents to prove the genuineness of activity of the trust or institution and fulfilment of all the conditions laid down in clauses (i) to (v) of section 80G of the Act. In the present case, as the assessee had not furnished the audit report for the assessment year 2022-23 and assessment year 2023- 24, documentary proof of expenditure incurred towards the object of the trust, the receipt of cultural events participation fee and the bank statement for the period 1.4.22 to 31.3.2024 and accordingly, the application filed in form no.10AB dated 11.11.2024 for approval u/s 80G of the Act was rejected and approval was cancelled.
Before us, the ld. A.R. of the assessee vehemently submitted that it is not a case that the assessee did not respond to the notice at all before the ld. CIT(Exemption). In fact, the assessee filed the application in Form 10A along with all requisite and supporting documents. Further, on 12/06/2025, the assessee duly appeared
The ld. D.R. on the other hand supported the order of the authorities below and fairly conceded that the case may be remitted back to the file of ld. CIT(Exemption) as the assessee could not furnished the complete details.
We have heard the rival submissions and perused the materials available on record. On going through the order of ld CIT(Exemption), we observe that the sole reason for denying the approval u/s 80G(5) of the Act was that the assessee could not furnish the complete details as called for by the ld. CIT(Exemption). Further, we also observe that ld. CIT(Exemption) has categorically mentioned that the audit report for AY 2022-23 and AY 2023-24, documentary proof of expenditure incurred towards the object of the trust, receipt of cultural events participation fee as well as bank statement for the period 1.4.2022 to 31.3.2024 were not furnished. This being so, in the interest of justice & fairplay and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the case to the file of ld. CIT(Exemption) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to produce all the relevant documents/evidences/information as may be required by the ld. CIT(Exemption) for granting approval u/s 80G(5) of the Act. In case of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly.
Universe Art Foundation, Bengaluru Page 4 of 4 7. In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 12th Dec, 2025