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Facts
The assessee, a Charitable Society, applied for registration under Section 80G of the Income Tax Act. The CIT(Exemption) dismissed the application, observing that major expenses were for office management and consultancy, not charitable activities. The assessee argued these expenses were linked to charitable activities and documentary evidence was not considered.
Held
The Tribunal noted that the CIT(Exemption) had not properly considered the documentary evidence submitted by the assessee. Consequently, the matter was remitted back to the CIT(Exemption) for fresh consideration.
Key Issues
Whether the CIT(Exemption) failed to consider all documentary evidence before rejecting the Section 80G registration application.
Sections Cited
80G, 1961
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Income Tax Appellate Tribunal, “A’’ BENCH: BANGALORE
Before: SHRI PRASHANT MAHARISHI & SHRI PRAKASH CHAND YADAV
PER PRAKASH CHAND YADAV, JUDICIAL MEMBER:
Present appeal of the assessee is arising from the order of ld. CIT(Exemption) dated 30.10.2024 and relates to denial of the registration u/s 80G of the Income Tax Act, 1961 (in short “The Act”).
Short facts as coming out from the orders of authorities below that assessee is a Charitable Society and has applied for the registration u/s 80G of the Act vide application dated 9.4.2024. The Office of the CIT(Exemption) issued notice to the assessee on 28.8.2024 and 26.9.2024, requiring the assessee to appear before ld. CIT(Exemption). In response to the notice of hearing, the authorized representative of the assessee attending the hearings on various dates had filed certain details. During the course of proceedings, the ld. CIT (Exemptions) while going through the statement of income
Page 2 of 3 and expenditure account of the assessee observed that the assessee has spent major amount towards office management and consultancy services. In this backdrop, the CIT(Exemptions) was of the view that the assessee has not conducted any activity, which are charitable in nature. Accordingly, the CIT(E) dismissed the application of the assessee.
Ld. Counsel for the assessee appearing on behalf of the assessee contended that the observation of ld. CIT(Exemption) are not correct in as much as management expenses and consultancy services are linked with the charitable activities of the assessee only. Ld. Counsel for the assessee further contended that the ld. CIT(Exemption) could not consider the documentary evidences filed before him.
Ld. D.R. appearing virtually relied upon the orders of ld. CIT(Exemption).
We have heard the rival submissions and perused the materials available on record. We observe that the ld. CIT(Exemption) has not pondered upon the documentary evidences filed by the assessee before it. Further, it is not coming out from the order of ld. CIT(Exemption) as to whether the ld. CIT(Exemption) office was in possession of all the material relied upon by the assessee. Therefore, in the interest of justice, we remit this matter back to the file of ld. CIT(Exemption) with a direction to consider the submissions as well as documentary evidences filed by the assessee and decide the matter afresh in accordance with law.
Page 3 of 3 6. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 6th Jan, 2025