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Facts
The assessee, Sri Hanumad Janma Bhoomi Teertha Kshetra Trust, filed applications for approval under Section 80G(5) of the Income-tax Act. The applications were rejected by the CIT(E) on the grounds that the trust was registered only for religious activities and not eligible for 80G recognition, and due to non-submission of information.
Held
The Tribunal held that the orders of the CIT(E) were unreasoned as the application was not properly examined and the assessee was not given a proper hearing. The Tribunal restored the issue back to the CIT(E) for fresh consideration.
Key Issues
Whether the CIT(E) erred in rejecting the assessee's application for 80G approval without proper examination and opportunity of being heard?
Sections Cited
80G(5), 12A, 80G
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Income Tax Appellate Tribunal, “B” BENCH: BANGALORE
Before: SHRI PRASHANT MAHARISHI & SHRI KESHAV DUBEY
O R D E R Per Prashant Maharishi, Vice President 1. is filed by Sri Hanumad Janma Bhoomi Teertha Kshetra Trust (the assessee/appellant) against the appellate order passed by the ld. CIT (Exemptions), Bangalore [ld. CIT(E)] dated 21.9.2024 rejecting the application of the assessee in Form 10AB filed on 29.3.2024 for approval u/s. 80G(5) of the Income-tax Act, 1961 [the Act] wherein the assessee was directed to furnish certain information which was not submitted and therefore the ld. CIT(E) rejected the application filed by the assessee. the assessee has once again challenged the order rejecting the application u/s. 80G(5) of the Act by order dated 31.3.2021 holding that registration u/s. 12A of the Act has been granted to the assessee on 16.12.2020 as religious activities, hence the applicant trust is not eligible for recognition u/s. 80G(5).
This shows that the above appeals are contesting the rejection of application for recognition u/s. 80G of the Act.
At the time of hearing, the assessee sought adjournment, however, looking at the Grounds of Appeal, the grievance of the assessee is that assessee was not heard prior to the rejection of the assessee’s application and the ld. CIT(E) failed to consider that most of the objects of the trust are charitable in nature and those are not exclusively for religious purposes. Therefore, looking at the issue involved in the appeals, the adjournment request is rejected.
As per the order dated 31.3.2021, it is gathered that the assessee is registered u/s. 12A of the Act vide Registration Certificate dated 16.12.2020 as religious activities and therefore the assessee trust is not eligible for recognition u/s. 80G. The ld. CIT(E) noted that as there were some discrepancies in the application filed by the assessee, letter dated 10.2.2021 was issued calling for details and clarification, however neither those clarifications were discussed, nor it is mentioned
that what was the discrepancy in the claim of assessee. Thus, order of the ld. CIT(E) for rejection of 80G approval is an unreasoned order. It is not the case that this trust is expressed to be for the benefit of any religious community or caste. Further, according to the provisions of sub-section (5B) of section 80 G, the application of the assessee was not examined at all. In view of the facts, we restore this issue back to the file of ld. CIT(E) with a direction to consider the application of the assessee afresh, calling for such documents as he wishes to examine, to examine the genuineness of the activities of the trust, thereafter as per provisions of sub-section (5B) of section 80G, decide the issue afresh.
In view of the above facts, both the appeals filed by the assessee on the same issue are allowed with the above directions.
Pronounced in the open court on this 23rd day of July, 2025.