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Facts
The assessee, a trust, filed an e-application for registration under section 80G of the Income Tax Act. The CIT(E) issued notices seeking various documents and information, to which the assessee submitted partial information. Consequently, the CIT(E) rejected the application.
Held
The Tribunal noted the assessee's submission that full response was made to the notices and that the rejection was based on incomplete information. The assessee's AR undertook to furnish all required details. In the interest of justice, the matter was restored to the CIT(E).
Key Issues
Rejection of application for registration under section 80G by the CIT(E) on grounds of incomplete information, despite the assessee claiming to have provided a full response.
Sections Cited
80G
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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI DUVVURU RL REDDY(KZ) & RAJESH KUMAR
The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Exemptions), Hyderabad dated 24/10/2024 in Appeal No. CIT(EXEMPTION),HYD/2024-25/12AA/11299 passed for Assessment Year 2025-26.
P a g e 1 | 4 Assessment Year :2025-26
Facts of the case are that the assessee has filed e-application in Form No.10AB seeking registration u/s.80G of the Income Tax Act, 1961. Ld CIT(E) issued notice to the appellant trust to produce Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information. In response to the notice, the assessee trust submitted partial information. Further, the ld CIT(E) issued another notice dated 14.10.2024 to furnish the following information:
“1. ITR copies, financial/bank statements/audit reports copies of previous registration granted/rejected u/s.123A/80G/10/(23C), declarations/affidavits, if ay etc.
2. The cash flow statement/financial statement indicated in the objectives of clause.
Copy of latest 3 months GST returns 4. List of donors in respect to 80G claim 5. Furnish the documentary evidences with regard to expenditure incurred for the objectives as per trust deed/MOA. In response to notice dated 14.10.2024, the assessee submitted partial information, from which, ld CIT (E) could not ascertain the details of utilisation of funds. Hence, the ld CIT(E) rejected the application for grant of registration u/s. 80G.
3. Aggrieved by the order of ld CIT(E), the assessee has filed appeal before the Tribunal.
At the time of hearing, ld AR of the assessee submitted that the ld CIT(E) has rejected the application citing that incomplete information was P a g e 2 | 4 Assessment Year :2025-26 submitted by ignoring the fact that the assessee has made full response to the notices during the proceedings u/s.80G(5)(iii) of the Act. It is submitted that the assessee being a public charitable trust is carrying out the charitable activities by providing financial help by course fees of students for pursuing medical education at Government Medical colleges who are of economically backward class in the memory of late Dr Wati Paramguru in whose name the trust has been established. It was further submitted that the matter be restored to the file of the ld CIT(E) to furnish all the information, as required for grant of registration u/s.80G of the Act.
On the other hand, ld CIT DR supported the order of ld CIT(E).
We have considered the rival submissions. The sole grievance of the assessee trust is that the assessee has furnished all the documents before the ld CIT(E) for grant of registration, but those are not considered citing the reason that partial information has been furnished. Before us, ld AR undertakes to furnish all the required details for grant of registration u/s.80G to the ld CIT(E). In view of above, in the interest of justice, the issues are restored to the file of the ld CIT(E) with the direction to the assessee to file all the relevant documents/evidences in support of the claim of grant of registration u/s.80G before the ld CIT(E) and the ld CIT(E) is directed to readjudicte the issue afresh after affording reasonable opportunity to the assessee. Thus, grounds of the assessee are allowed for statistical purposes.
P a g e 3 | 4 Assessment Year :2025-26
In the result, appeal of the assessee stands allowed for statistical purposes.
Order dictated and pronounced in the open court on 01/07/2025.