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Facts
The assessee, a charitable trust registered under Section 12A with provisional Section 80G approval, was denied permanent Section 80G registration by the CIT(E). The CIT(E) held that the trust's activities promoting "Vedanta and sanathana dharma" were religious and that mandatory clauses were absent from the trust deed, without providing sufficient opportunity to the assessee.
Held
The Tribunal set aside the CIT(E)'s order, finding that the CIT(E) erred by rejecting the Section 80G application without affording sufficient opportunity of being heard or considering the assessee's submissions. The matter was remanded back to the CIT(E) for fresh adjudication in accordance with law.
Key Issues
Whether the CIT(E) was justified in rejecting permanent Section 80G registration based on the nature of the trust's activities and alleged lack of mandatory clauses, without providing adequate opportunity to the assessee.
Sections Cited
11, 12, 12A, 80G
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Sonjoy Sarma
Assessment Years: 2025-26 Sri Sankara Charitable Trust CIT(Exemption), Kochi v. Advaithashramam, Kolathur, Atholi, Kozhikode-673315. PAN : AAETS4986P. (Appellant) (Respondent) Appellant by : None Respondent by : Shri Suresh Sivanandan IRS, CIT-DR Date of Hearing : 03.06.2025 Date of Pronouncement : 11.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 29.08.2024 of the CIT(Exemption), Kochi [hereinafter referred to as ‘CIT(E)’] denying the assessee’s application for permanent registration u/s 80G of the Act.
Brief facts of the case are that the assessee is a charitable trust registered u/s 12A vide registration certificate dated 31.12.2012. The assessee also got provisional approval u/s 80G vide certification dated 06.09.2023 and availed exemption u/s 11 & 12 of the Act. The ld. CIT(E) rejected the permanent approval u/s 80G of the Act on the ground that the activity of trust is not a
The CIT(E) rejected the application in Form 10AB filed for registration u/s 12A observing as under:
“Based on the facts as above, it is clear that "Vedanta and sanathana dharma" intrinsic Components of Hindu religion and exclusively practiced by its followers. Therefore, the interpretations of the terms" Sanathana Dharma and Vedanta" by the assessee are not factual and irrelevant which cannot be considered. Further in the reply of assessee, they are not denying the fact that the main aim of their activities are to spread sanathana dharma and Vedanta.
Further, it is noted that applicant has not given any comprehensive or logical reply to the absence of mandatory clauses in the trust deed quoted in Para 3 and there is no evidence of any action taken for the incorporation of the same in the trust deed.
In view of the above discussed grounds, the present application in Form 10AB filed under clause (iii) of first proviso to sub-section (5) of section 80G of the I. T. Act by the applicant is rejected.”
No one has appeared on behalf of the assessee despite serving notice. We proceed to adjudicate the case after hearing the ld. DR and perusing the materials on record.
After hearing the ld. DR and going through the records , we find that the ld. CIT(E) erred in rejecting the permanent approval u/s 80G of the Act without providing sufficient opportunity to the assessee and also without considering the submissions or documents submitted by the assessee. Therefore, in the interests of justice, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the ld. CIT(E) for fresh adjudication in accordance with law after considering the documents or giving sufficient opportunity of being heard to the assessee.
Order pronounced on 11.06.2025.