Loading judgment…
Facts
The assessee, Bengaluru Poetry Festival, applied for approval under section 80G of the Income Tax Act. The CIT(Exemption) rejected the application citing non-appearance of the assessee for hearings and failure to submit required documents. The assessee contended that they had requested an extension, submitted documents on time, and missed a hearing due to unavoidable circumstances while travelling.
Held
The Tribunal noted that while the CIT(Exemption) issued notices, the assessee had visited the office seeking an extension and subsequently submitted documents. The Tribunal found that the contention of non-response and failure to submit documents was not entirely correct.
Key Issues
Whether the CIT(Exemption) was justified in rejecting the 80G approval application without affording a proper opportunity of being heard, considering the assessee's submission of documents and the circumstances of their non-appearance.
Sections Cited
80G(5), 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A’’ BENCH: BANGALORE
Before: MS. PADMAVATHY S. & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
This appeal at the instance of the assessee is directed against the order of ld. CIT(Exemptions) Bengaluru dated 18/06/2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1077184743(1) rejecting the approval u/s 80G of the Income Tax Act, 1961 (in short “The Act”).
The assessee has raised the following grounds of appeal:-
Brief facts of the case are that the assessee filed the application in Form No.10AB on 28.12.2024 for approval u/s 80G(5) of the Act. The ld. CIT(Exemption) granted opportunity of being heard vide notice dated 26.5.2025 as well as notice dated 3.6.2025 to represent the case. However, the ld. CIT(Exemption) observed that the assessee did not respond to any of the notices. The ld. CIT(Exemption) is of the view that the assessee was mandated to submit necessary documents to prove the genuineness of the activity of the Trust or institution and fulfilment of all the conditions laid down in clause (i)
Bengaluru Poetry Festival, Bengaluru Page 3 of 5 to (v) of section 80G of the Act. In the present case, as the assessee had not responded and failed to appear before the CIT(Exemption) and submit the necessary details/documents called for, in view of the above the application filed in Form No.10AB dated 28.12.2024 for approval u/s 80G of the Act was rejected and approval cancelled.
Aggrieved by the order of ld. CIT(Exemption) rejecting the approval u/s 80G(5) of the Act, the assessee is in appeal before this Tribunal.
Before us, the ld. A.R. of the assessee vehemently submitted that on 26.5.2025, the authorized representative of the trust visited the office of the concerned officer and requested for a short extension of time for compiling and submitting the requisite documents. Further, on 30.5.2025, the assessee Trust submitted all the supporting documents as called for by the ld. CIT(Exemption). Further, the ld. A.R. submitted that as the Trustee was travelling, the assessee could not appear on 10th June, 2025 in response to notice dated 3.6.2025 and accordingly prayed that one more opportunity may be granted before the ld. CIT(Exemption) to substantiate his case.
The ld. D.R. on the other hand, vehemently submitted that in spite of providing two opportunities by the ld. CIT(Exemption), the assessee did not file any reply/documents in response to the notices and therefore, ld. CIT(Exemption), Bengaluru has rightly rejected the application filed in form 10AB.
We have heard the rival submissions and perused the materials available on record. Before us, the ld. A.R. of the assessee submitted that authorized representative of the trust visited the office of the concerned officer on 26.5.2025 and requested for short Bengaluru Poetry Festival, Bengaluru Page 4 of 5 extension of time for compiling and submitting the requisite documents. Further, the assessee trust on 30.5.2025, submitted all the supporting documents as required by the ld. CIT(Exemption) and discharged their obligation. Therefore, the contention of the ld. CIT(Exemption) that assessee had not responded and failed to submit the necessary documents is not correct. This being so, in the interest of justice and fair play and as requested by ld. A.R. of the assessee, we remit the entire issue to the file of ld. CIT(Exemption) Bengaluru to decide afresh in accordance with law after taking into consideration the relevant documents/records submitted by the assessee on 30.5.2025. The CIT(Exemption) may also call for any further details/records as may be necessary for granting the approval u/s 80G of the Act. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to furnish necessary information/records /accounts /evidence/certificates as may be required by the ld. CIT(Exemption) for granting the approval. We make it clear that in case of further default, the assessee shall not be entitled to any leniency. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 30th Jan, 2026