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Facts
The assessee, a charitable trust, applied for approval under Section 80G(5)(iii) but failed to appear for hearings and submit required documents. The CIT(E) denied the approval citing lack of satisfaction regarding the genuineness of activities and fulfillment of conditions.
Held
The Tribunal allowed the appeal for statistical purposes, setting aside the CIT(E)'s order. The CIT(E) was directed to grant another opportunity of hearing to the assessee, conditional upon the assessee paying a cost of Rs. 5,000/-.
Key Issues
Whether the CIT(E) was justified in denying approval under Section 80G(5)(iii) without granting further opportunity to the assessee, and if a cost can be imposed for non-appearance.
Sections Cited
80G(5)(iii), 80G(5), 89G(5)(i), 89G(5)(v)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Vansda Taluka Seva The CIT (Exemption), Sangh, Bhinar Ahmedabad Bhinar, Vansda Vs Navsari-396591 Gujarat PAN: AAATV1830F (Appellant) (Respondent) Assessee Represented: Shri M.K. Patel, A.R. Revenue Represented: Adjournment Application filed Date of hearing : 22-04-2025 Date of pronouncement : 24-04-2025 आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:-
This appeal is filed by the Assessee as against the order dated 21.11.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying approval under section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Brief facts of the case is that the assessee is a charitable Trust and filed application for approval u/s 80G(5)(iii) in Form 10AB. The Ld. CIT(E) issued hearing notices on 10/09/2024 and Page No 2 Vansda Taluka Seva Sangh vs. CIT(E) on 24/10/2024 via email to furnish certain details/documents as prescribed in Rule 11AA(2) of the IT Rules for granting approval. The assessee neither filed any submissions nor sought for any adjournments, therefore Ld. CIT(E) denied approval u/s. 80G(5) of the Act as he was not satisfied about genuineness of the activities of the fund as well as fulfillment of conditions laid down in section 89G(5)(i) to (v) of the Act.
The Ld. Counsel submitted that the assessee Trust is prepared to file all required documents before Ld. CIT(E) for approval and, therefore, requested to set aside the matter back to the file of Ld. CIT(E) for granting the approval. The assessee could not explain, why it has not appeared in the hearings given by Ld. CIT(E). Therefore, we deem it fit to impose a cost of Rs. 5,000/- on the assessee, payable to the Income Tax Department within two weeks from the date of receipt of copy of this order. On production of receipt for payment of the cost, Ld. CIT(E) is directed to give one more opportunity of hearing to the assessee for approval u/s 80G(5)(iii) of the Act, in accordance with the provisions of law.
In the result, the appeal filed by the Assessee is allowed for statistical purpose.