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Facts
The assessee trust applied for approval under Section 80G(5) of the Income Tax Act. The Ld. CIT(E) rejected the application, citing the assessee's failure to submit required documents despite notices. The assessee appealed, arguing a violation of natural justice due to insufficient opportunity for hearing.
Held
The Tribunal restored the matter to the Ld. CIT(E) for de-novo consideration, emphasizing that the assessee must comply with notices, failing which the CIT(E) is at liberty to pass orders based on available material.
Key Issues
1. Whether the rejection of Section 80G(5) approval by the CIT(E) without providing sufficient opportunity of hearing constituted a violation of natural justice. 2. Whether the matter should be remanded for de-novo consideration.
Sections Cited
80G(5)
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: SMT. ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL
O R D E R
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 21.11.2024.
The Assessee has taken the following grounds of appeal:-
“1. Trust is doing charitable activities since 23-07-2000. Trust is doing educations, health related, youth development, environmental activities etc. since incorporation. Trust has been granted approval under section 80G as per order dated 04-04-2022. Trust has applied for permanent approval under section 80G. Trust has requested online for adjournment on 13-11-2024 for given submission upto 28-11-2024 but rejection order is passed on 21-11-2024 so opportunity for giving details not available to the trust. The Act of CIT (Exemption) is against principal of natural justice so we are filing this appeal. We may be allowed to add any other ground of appeal
.”
3. The brief facts of the case are that the assessee / applicant trust filed application for approval of trust under Section 80G(5) of the Act. However, Ld. CIT(E) observed that despite issuance of notices of hearing, the details / documents called for by his office were not submitted by the assessee / applicant trust. Accordingly, the Ld. CIT(E)
Lions Club of Gandhinagar Femina vs. CIT(E) Asst. Year –N.A. - 2– rejected the application for grant of approval under Section 80G(5) of the Act with the following observations:
“7. As discussed above, the applicant/assesee has failed to file documentary evidences to enable me to satisfy about: (A) the genuineness of activities of such institution or fund; and (B) the fulfillment of all the conditions laid down in clauses (i) to (v) of section 80G(5) of the act.
In view of the above, the present application filed in Form No. 10AB for approval u/s 80G(5)(iii) of the Act is rejected and your provisional approval also stands cancelled.”
The assessee / applicant trust is in appeal before us against the aforesaid order passed by Ld. CIT(E) rejecting the grant of approval under Section 80G(5) of the Act.
Before us, the Counsel for the assessee submitted that the order has been passed by the Ld. CIT(E) in gross violation in the principles of natural justice. The Counsel for the assessee submitted that only two notices were issued by Ld. CIT(E) and thereafter, without granting sufficient opportunity of hearing, the application for grant of registration filed by the assessee was rejected. The Counsel for the assessee submitted that if given an opportunity of hearing, the assessee / applicant trust shall file all necessary details / documents in support of it’s case, to the satisfaction of Ld. CIT(E).
On going through the facts of the instant case, in the interest of justice, the matter is restored to the file of Ld. CIT(E) for de-novo consideration. However, we make it clear that in case there is any non- compliance on the part of the assessee / applicant trust in response to notices issued by Ld. CIT(E), then the CIT(E) would be at liberty to Lions Club of Gandhinagar Femina vs. CIT(E) Asst. Year –N.A. - 3– pass appropriate orders, on the basis of material available on record, in accordance with law.
In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 22/05/2025
Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 22/05/2025 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,