RAINBOW CHILDREN'S HOSPITAL FOUNDATION,HYDERABAD vs. CIT (EXEMPTIONS) , HYDERABAD

1. 3. The brief facts of the case are that this present appeal has been filed by the assessee against the order passed by the Ld. CIT(E) in Form No. 10AD dated 31.12.2024, rejecting the assessee’s application for approval under Section 80G of the Income Tax Act, 1961 (“the Act”), filed in Form No. 10AB. In the course of appellate proceedings before the Tribunal, the assessee had filed an application seeking adjournment. However, considering the nature of the issue and the material available on record, the Bench proceeded to adjudicate the matter based on the appeal grounds and records available.

The Learned Authorised Representative (“Ld. AR”) of the assessee has specifically contended that, the Ld. CIT(E) failed to appreciate the evidentiary material and documents placed on record to demonstrate that the trust is engaged in genuine charitable activities in accordance with its objects. The Ld. AR prayed before the bench, one more opportunity may be provided to submit all the documents before the Ld. CIT(E).

Per contra, the Learned Departmental Representative (“Ld. DR”) relied on the findings of the Ld. CIT(E) and submitted that, the application was rightly rejected due to lack of evidence of genuine charitable activity. However, in fairness, the Ld. DR submitted that if the assessee has fresh evidence or supporting documents to justify its claim, the matter may be remanded back to the Ld. CIT(E) for fresh adjudication on merits, after affording proper opportunity of being heard.

We have heard the rival submissions and also gone through the record in the light of the submissions made by either side. We have perused the order of the Ld. CIT(E) rejecting the assessee’s application in Form No. 10AB seeking approval under Section 80G of the Act. We find that the application has been rejected on the basis that no substantial charitable activity has been carried out by the assessee-trust. However, from the grounds of appeal, it is evident that the assessee has claimed to have filed relevant documents in support of its charitable activities, which were allegedly not appreciated or examined by the Ld. CIT(E). Considering the principles of natural justice and substantive fairness, and also keeping in view the submission of the Ld. DR, we are of the considered opinion that the matter requires reconsideration. Therefore, in the interest of justice, we deem it appropriate to remand the matter back to the file of the Ld. CIT(E) with a direction to grant proper opportunity of being heard to the assessee, including the liberty to file any additional evidence in support of its claim of charitable activities. The Ld. CIT(E) shall thereafter pass a reasoned order in accordance with law, after considering all submissions and documents filed by the assessee. In view of the above discussion, the matter is restored to the file of the Ld. CIT(E) for de novo adjudication in accordance with law. The assessee is directed to cooperate and file all relevant documents as may be required during the proceedings.