ROYAL DEEDS CHARITABLE TRUST,VIJAYAWADA vs. COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD

Facts

Royal Deeds Charitable Trust applied for registration under Section 80G of the Income Tax Act, 1961, by filing Form-10AB. The Ld. CIT (Exemption) issued notices seeking documents and details, and despite submissions from the assessee, rejected the application on the grounds that the Trust's activities were commercial in nature and violated provisions of Section 12AB and 80G.

Held

The Tribunal found that the Ld. CIT (Exemption) rejected the application without properly specifying what constituted commercial activities and without due consideration of the documents submitted by the assessee. Therefore, the matter was remitted back to the Ld. CIT (Exemption) to re-examine the documents and submissions, and decide on the Section 80G registration after providing a reasonable opportunity of being heard to the assessee.

Key Issues

Whether the CIT (Exemption) was justified in rejecting the assessee's Section 80G registration application without specifying commercial activities or considering submitted documents, and whether the rejection violated principles of natural justice.