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Facts
The assessee's application for registration under Section 12AB and approval under Section 80G of the Income-tax Act was rejected by the CIT(E). The reason for rejection was that the trust's activities did not fall under the charitable purposes as defined in Section 2(15) of the Act.
Held
The Tribunal held that the assessee should be given one more opportunity to present its case and submit evidence before the CIT(E). Therefore, both matters were remitted back to the CIT(E) for fresh consideration and adjudication.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration under Section 12AB and approval under Section 80G without giving the assessee a proper opportunity to present its case and evidence.
Sections Cited
12A(1)(ac)(iii), 12AB, 80G, 2(15)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 31.12.2024 in rejecting approval for registration u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”) and approval u/s 80G of the Act.
& 615/Chny/2023 Asgada Foundation :- 2 -:
ITA No.614/Chny/2025:
The Ld CIT(E) has rejected the application filed by the assessee in Form 10AB u/s. 12(1)(ac)(iii) of the Act on 25.06.2024 seeking registration u/s. 12AB of the Act for the reason that the activities of the trust is not Relief of the poor, Education, Medical relief and preservation of environment as defined in Section 2(15) of the Act .
The Learned Authorized Representative (AR), before us has submitted that he has evidences in support of its activities, like photographs, newspaper publications, etc. but the same could not be produced before the Ld. CIT(E) and, therefore, requested for one more opportunity to file the necessary details before the Ld. CIT(E).
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
We have heard both the parties and gone through the order of the Ld. CIT(E). The Ld. CIT(E) rejected the application for registration u/s. 12AB of the Act after examining the objects of the trust and its financial statements. However, before us, the Ld. AR has submitted that the assessee has evidences to demonstrate that it has undertaken charitable activities, but could not be furnished before Ld CIT(E), & 615/Chny/2023 Asgada Foundation :- 3 -: therefore one more opportunity may be provided before Ld CIT(E).
Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case before Ld CIT(E). Accordingly, we remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and submit all the relevant documents sought for by the Ld. CIT(E). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
: 6. In this case, the Ld. CIT(E) had rejected the assessee’s application for approval u/s. 80G(5) of the Act on the ground that the assessee has failed to prove the activities of the trust are in charitable as defined in section 2(15) of the Act. Since, we have already remitted the matter relating to registration u/s. 12A back to the file of the Ld. CIT(E) for fresh consideration, we are of the considered opinion that the issue of approval u/s. 80G(5) of the Act also requires reconsideration. Accordingly, we remit this matter as well to the file of & 615/Chny/2023 Asgada Foundation :- 4 -: the Ld. CIT(E) for fresh adjudication, after giving due opportunity to the assessee to clarify its objects and activities.
In the result, both the appeals filed by the assessee is allowed for statistical purposes.
Order pronounced on 30th day of July, 2025 at Chennai.