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Facts
The assessee filed an e-application in Form No.10AB seeking registration u/s.80G. The CIT(E) rejected the application observing that the trust was not carrying out substantial charitable activities, violating Section 80G of the Act. The assessee submitted that all documents were furnished, and requested another opportunity to provide required documents.
Held
The Tribunal noted that the appellant trust could not place relevant documents before the CIT(E) to prove the bonafides of its charitable activities. Accordingly, the Tribunal set aside the impugned order.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration u/s. 80G due to lack of sufficient documentary evidence of charitable activities? Whether the assessee should be granted another opportunity to furnish documents?
Sections Cited
80G, 80G(5)(iii)
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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI DUVVURU RL REDDY(KZ) & RAJESH KUMAR
Assessment Year : 2025-26 Darul Uloom Mujahid E Millat Vs. CIT (Exemption), Hyderabad Educational and Welfare Trust, At/PO/PS- Dhamnagar, Dist: Bhadrak PAN/GIR No. AADTD 1777 G (Appellant) .. ( Respondent) Assessee by : Shri P.K.Mishra,, AR Revenue by : Shri Ashim Kr Chakraborty, CIT. DR Date of Hearing : 02/07/2025 Date of Pronouncement : 02/07/2025 O R D E R Per Bench The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Exemptions), Hyderabad dated 16.12.2024 rejecting the application in Form No.10AB for grant of registration u/s.80G of the Act for the assessment year 2025-16.
Facts in brief of the case are that the assessee has filed an e- application in Form No.10AB seeking registration u/s.80G of the Act. The ld CIT(E) issued notice u/s. 80G(5)(iii) to the assessee to produce
P a g e 1 | 3 memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information. Considering the submission of the assessee trust, the ld CIT(E) observed that no substantial activities which are charitable in nature are being carried out by the assessee trust, which is in violation of the provisions of section 80G of the Act. Accordingly, he rejected the application for grant of registration u/s 80G of the Act.
At the time of hearing, ld AR of the assessee submitted that before the ld CIT(E), the assessee had furnished all the documents for grant of approval for registration u/s. 80G of the Act. It is prayed that one more opportunity be given so that the assessee trust will furnish the required documents before the ld CIT(E) for grant of registration u/s. 80G.
On the other hand, ld CIT DR supported the orders of the lower authorities.
We have carefully considered the rival submissions and also perused 5. the orders of ld CIT(E). It is seen that the appellant trust could not place relevant documents before the Ld. CIT(E) to prove the bonafides of its charitable activities. Accordingly, we set aside the impugned order and remand the matter to the file of Ld. CIT(E) for considering the merit in appellant's claim about charitable activities undertaken for grant of provisional registration u/s. 80 G.
P a g e 2 | 3
In the result, appeals of the assessee stand allowed for statistical purposes.
Order dictated and pronounced in the open court on 02/07/2025.
Sd/- Sd/- (RAJESH KUMAR) (DUVVURU RL REDDY) Accountant Member VICE PRESIDENT Cuttack: Dated 02/07/2025 B.K.Parida, Sr. PS (OS) Copy of the Order forwarded to : 1. The Appellant : Darul Uloom Mujahid E Millat Educational and Welfare Trust, At/PO/PS- Dhamnagar, Dist: Bhadrak 2. The Respondent : CIT(Exemption), Hyderabad 3. The CIT(A)-, 4. Pr.CIT- 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// By order