Loading judgment…
Facts
The assessee trust applied for final approval under Section 80G of the Income Tax Act. The CIT(Exemptions) cancelled the provisional approval after the assessee failed to respond to notices due to a trustee's severe injury. The trustee, aged 76, was unable to represent the case.
Held
The Tribunal held that the assessee could not represent its case before the CIT(Exemptions) due to a trustee's injury and advised bed rest. Given this, and in the interest of justice, the case was remitted back to the CIT(Exemptions) for fresh decision.
Key Issues
Whether the assessee was prevented from responding to the CIT's notices due to circumstances beyond its control, and if so, whether the cancellation of 80G approval was justified.
Sections Cited
80G, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B’’ BENCH: BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
This appeal at the instance of the assessee is directed against the order of ld. CIT(Exemptions), Bangalore dated 23.12.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1071454641(1) cancelling the approval u/s 80G of the Income Tax Act, 1961 (in short “The Act”).
The assessee has raised the following grounds of appeal:
Brief facts of the case are that assessee trust was granted registration in form no.10AC on 31.12.2021 under sub-clause (i) of Rishi Samskruti Vidya Kendra, Bangalore Page 3 of 5 clause (ac) of sub-section (1) of section 12A of the Act effective from AY 2022-23 to AY 2026-27 vide Unique registration no.(URN) AAATR5594AE19826. The assessee trust has also been granted provisional approval under clause (iv) of first proviso to sub-section (5) of section 80G of the Act on 31.12.2021 effective from 31.12.2021 to AY 2024-25. Thereafter, the assessee trust applied for final approval u/s 80G of the Act on 29.6.2024 in form no.10AB. The ld. CIT(Exemptions) had granted opportunity of being heard vide notices dated 18.10.2024 and 8.11.2024. However, the assessee had not responded to any of the notices. The ld. CIT(Exemptions) is of the view that the assessee was mandated to submit necessary documents to prove the genuineness of the activity of the trust and fulfillment 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 responded and failed to appear and submit the necessary details/documents called for, the ld. CIT (Exemptions) accordingly rejected the application filed in form no.10AB dated 29.6.2024 and cancelled the approval.
Aggrieved by the order ld. CIT(Exemptions) dated 23.12.2024 cancelling the registration u/s 80G of the Act, the assessee has filed the present appeal before this Tribunal. The assessee has also filed a paper book comprising 30 pages containing therein affidavit, medical certificate, order for registration u/s 12A of the Act, order for provisional approval u/s 80G of the Act, form 10BB, financial statement for AY 2024-25.
Before us, the ld. A.R. of the assessee vehemently submitted that the trustee who was in-charge of the financial affairs as well as statutory affairs of the trust, had fallen while climbing a stair case resulting in severe injury and accordingly the doctor had advised for complete bed rest for 3 months. Further, ld. A.R. of the assessee Rishi Samskruti Vidya Kendra, Bangalore Page 4 of 5 submitted that trustee being 76 years of age and because of the severity of injury could not represent the case of the trust before the ld. CIT(Exemptions) and accordingly prayed for one more opportunity before the ld. CIT(Exemptions) to represent its case.
Ld. D.R. on the other hand, relied on the order of the authority below.
We have heard the rival submissions and perused the materials available on record. It is undisputed fact that assessee trust could not represent its case before the ld. CIT(Exemptions) as the trustee of the assessee trust who was looking after the financial and statutory affairs of the trust was diagnosed with anterior cruciate ligament tier of the right knee and the doctor has advised for complete bed rest for 3 months. Before us, The trustee of the assessee trust has also filed an affidavit in original dated 19.4.2025 stating therein the reason stated above. Further, to corroborate his claim a medical certificate dated 5.11.2024 is also produced before us. This being so, in the interest of justice and fair play and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT (Exemptions) 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/submit all the necessary details/documents/records/financials/reports in support of its claim or as may be required by the ld. CIT (Exemptions) for granting approval u/s 80G of the Act. The Assessee Trust shall not take any unnecessary adjournments & cooperate with the Authority for the early disposal. It is ordered accordingly.
In the result, appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced in the open court on 25th June, 2025