Loading judgment…
Facts
Chinmay Seva Trust appealed against the CIT (Exemptions)'s rejection of its applications for registration under Section 12AB and approval under Section 80G of the Income Tax Act, 1961. The CIT (Exemptions) rejected the applications stating the trust's activities were not commensurate with its objectives, without specifying deficiencies despite the submission of extensive documentary evidence.
Held
The tribunal found the CIT (Exemptions)'s rejection order cryptic and prima facie contrary to facts, as it failed to provide reasons for disregarding the documentary evidence of charitable activities. Therefore, the tribunal set aside the impugned orders and remanded the matters back to the CIT (Exemptions) for reconsideration, granting the assessee an opportunity of hearing.
Key Issues
Whether the CIT (Exemptions) correctly rejected the applications for trust registration and 80G approval based on cryptic reasons and without considering the documentary evidence of charitable activities.
Sections Cited
12AB, 80G, 12A, 2(15)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Visakhapatnam “Division” Bench, Visakhapatnam
Before: Shri Vijay Pal Rao, Vice-Shri Manjunatha, G.
ORDER
Per Vijay Pal Rao, Vice President These two appeals by the assessee are directed against separate orders of the learned CIT (Exemptions), both dated 23/01/2025 whereby the applications of the assessee seeking registration u/s 12AB as well as approval u/s 80G of the Act were rejected. None has appeared on behalf of the assessee when these appeals were called for hearing. It transpires from the record that on the last date of hearing i.e. 3rd June, 2025, the adjournment was sought on behalf of the assessee and consequently, the hearings of the appeals were adjourned for today i.e. 31st July,
Page 1 of 6 2025. Despite hearing was adjourned on the request of the assessee, nobody appeared on behalf of the assessee and therefore, the Bench proposed to hear and dispose of these appeals, ex-parte.
The assessee raised common grounds in these appeals as under:
From the grounds of appeals, it can be noticed that the assessee has produced the relevant record and details including
Page 3 of 6 the documentary evidence comprising of financial statements, activity report and bank account statements to show that the assessee has been carrying out the bonafide charitable activities. The assessee has also filed the replies filed before the learned CIT (Exemptions) as well as other records in the Paper Book running into 142 pages.
On the other hand, the learned DR has relied upon the impugned orders of the learned CIT (Exemptions) and submitted that the assessee has failed to establish that the activities are commensurate with the activities as per the objects of the assessee Trust.
Having considered the grounds of appeal of the assessee as well as the documentary record filed by the assessee, we find that the assessee has produced a good amount of documentary evidence in support of the claim of carrying out the charitable activities, however, the learned CIT (Exemptions) has rejected the application by giving the cryptic reasonings in para 3 of the impugned order as under:
Once the assessee has filed relevant record to show that the assessee has been carrying out charitable activities for achievement of the objects of the assessee Trust, then the reasons given by the learned CIT (Exemptions) while rejecting the applications of the assessee, prima facie, contrary to the facts and records. The learned CIT (Exemptions) has not given any reason for rejecting the documentary evidence filed by the assessee in support of the claim. Accordingly, in the facts and circumstances of the case and in the interest of justice, the impugned orders of the ld CIT (Exemptions) are set aside and the matters are remanded to the record of the learned CIT (Exemptions) for reconsideration of the application of the assessee after consideration of the relevant record filed by the assessee as well as an opportunity of hearing to the assessee.
In the result, appeals filed by the assessee are allowed for statistical purposes.