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Facts
Three Assessee Trusts applied for registration under Section 80G(5) of the Income Tax Act, 1961. Their applications were rejected by the CIT(Exemption) for non-compliance with notices, as the notices sent to their registered email IDs landed in the spam folder, leading to their unawareness.
Held
The Tribunal set aside the orders of the CIT(Exemption) and remanded the matter. The CIT(Exemption) was directed to grant one more opportunity of hearing to the assessees by issuing physical notices and then pass orders in accordance with the law.
Key Issues
Whether the denial of registration under Section 80G(5) based on non-compliance due to emails landing in spam folder violates the principles of natural justice, and if an opportunity of physical hearing should be granted.
Sections Cited
80G(5), 80G(5)(iii)
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Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH
Before: Shri T.R. Senthil Kumar & Shri Makarand Vasant Mahadeokar
आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
These three appeals are filed by three different Assessee Trust as against separate orders all dated 21-11-2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section u/s. 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Since common issue is involved in the appeals, for the sake of convenience the same are disposed off by this common order.
The common Grounds of appeal raised by the assessee are as follows:
1. The Appellant Trust submitted an application for registration under Section 80G(5)(iii) of the Income Tax Act, 1961, in Form No. 10AB, before the Learned Commissioner of Income Tax (Exemptions), Ahmedabad, on 30.06.2024.
2. The Learned CIT (Exemptions) rejected the application vide order dated 21.11.2024, citing non-compliance with notices issued on 10.09.2024 and 24.10.2024, which sought additional details and documents.
3. The aforementioned notices were sent to the registered email ID of the Appellant. However, due to technical issues, the emails were directed to the SPAM folder, resulting in the Appellant's unawareness of their receipt. Consequently, the Appellant could not respond to the notices. 4. The Appellant Trust is a bona fide charitable organization, and denial of registration under Section 80G(5) would adversely affect its ability to fulfill its charitable objectives. 5. The Appellant Trust, being aggrieved by the rejection, seeks the kind and judicious intervention of the Hon'ble ITAT, Ahmedabad, for a fair resolution of the matter. to 212/Ahd/2025 Page No 3 C.K. Prajapath Charitable Trust and Ors. vs. CIT(E)
We have perused the impugned orders passed by the Ld. CIT(E) who had given two opportunities to the respective assessee Trust. The assessee failed to comply with the above hearing notices, since the email notices were received in spam folder, therefore for non- compliance, registration u/s. 80G were denied by Ld. CIT(E).
Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the orders passed by the Ld. CIT(E) with a direction to give one more opportunity of hearing to the assessee by issuing physical notice to the assessee Trust for granting registration u/s. 80G and pass orders in accordance with the provisions of law. Needless to say, the assessee Trusts should cooperate by furnishing all the relevant materials before Ld. CIT(E) for granting registrations.
In the result, the appeals filed by the three Assessees are allowed for statistical purposes.
Order pronounced in the open court on 28-03-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 28/03/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) to 212/Ahd/2025 Page No 4 C.K. Prajapath Charitable Trust and Ors. vs. CIT(E)