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Facts
The assessee trust applied for registration under sections 12AB and 80G of the Income Tax Act, 1961. The CIT(E) rejected the applications after observing that the trust was not carrying out substantial charitable activities and had violated provisions of sections 11 & 12 of the Act, citing incomplete documentation.
Held
The Tribunal noted that the appellant trust failed to produce relevant documents before the CIT(E) to substantiate its charitable activities. Consequently, the Tribunal set aside the CIT(E)'s orders.
Key Issues
Whether the CIT(E) erred in rejecting the application for registration under sections 12AB and 80G due to insufficient evidence of charitable activities and compliance with statutory requirements.
Sections Cited
12AB, 80G, 11, 12, 12A
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,
Before: S/SHRI DUVVURU RL REDDY(KZ) RL REDDY(KZ) & AND RAJESH KUMAR
Assessment Year :2023-24 Samprak Vs. CIT(Exemption), Hyderabad CIT(Exemption), Hyderabad At: At: 311/4370, 311/4370, Niladri Niladri Vihar, Vihar, Sailashree Vihar, Vihar, Bhubaneswar 751021 PAN/GIR No. AAAJS 3164 R (Appellant (Appellant) .. ( Respondent Respondent) Assessee by : Shri : Shri Sanjay Behura and Ananta Narayan Singhbabu Narayan Singhbabu, ARs Re Revenue by : Shri Ashim Kr Chakraborthy, Ashim Kr Chakraborthy, CIT DR Date of Hearing : 01/07/202 /2025 Date of Pronouncement : 01/07/202 /2025 O R D E R Per Bench The present appeal The present appeals are directed at the instance of assessee directed at the instance of assessee against the order of ld. Com the order of ld. Commissioner of Income Tax (E)), Hyderabad dated 09/12/2024 in Appeal No.CIT(EXEMPTION),HYD/2024 CIT(EXEMPTION),HYD/2024-25/12AA/11704, rejecting the application for grant of registration u/s. rejecting the application for grant of registration u/s.12AB 12AB and dated 11/12/2024 11/12/2024 in in Appeal Appeal No. No.CIT(EXEMPTION),HYD/2024 EXEMPTION),HYD/2024-25/12AA/11703 rejecting the application for grant of registration u/s. 80G of the Act, passed rejecting the application for grant of registration u/s. 80G of the Act, rejecting the application for grant of registration u/s. 80G of the Act, for Assessment Year for Assessment Year 2023-24.
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Facts of the case are that the assessee has filed e-applications in Form No.10AB seeking registration u/s. 12AB and 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 30.10.2024 in respect of application u/s.12 AB and 13.11.2024 in respect of grant of registration u/s. 80G of the Act to furnish the following information:
“1.. The cash flow statement/financial statement indicated in the objectives of clause.
Copy of latest 3 months GST returns 3. List of donors in respect to 80G claim 4. Furnish the documentary evidences with regard to expenditure incurred for the objectives as per trust deed/MOA. In response to notices, the assessee submitted information, from which, ld CIT (E) observed that no substantial charitable activities are being carried out by the assessee trust, which is in violation of provisions of section 11 & 12 of the Act. Hence, the ld CIT(E) rejected the application for grant of registration u/s. 12AB and 80 G of the Act.
Aggrieved by the order of ld CIT(E), the assessee has filed appeals before the Tribunal.
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At the time of hearing, ld AR of the assessee submitted that the ld CIT(E) has rejected the applications without passing a speaking order despite the fact that the appellant trust has fulfilled all statutory requirements and submitted requisite documents. It is submitted that the activities of the trust are genuine and being carried out in accordance with the objectives stated in its bye-laws. Ld AR submitted that the assessee trust has complied with all legal requirements and has not violated any conditions necessary for obtaining registration under section 12AB and 80G of the Act. It was prayed that all the necessary documents in support of registration u/s.12AB and 80G are available with the assessee and if the matter is restored, the assessee will produce the same for grant of registration u/s.12AB and 80G of the Act.
On the other hand, ld CIT DR supported the order of ld CIT(E).
We have carefully considered the rival submissions and also perused 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 orders and remand both these matters 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.12AB. The matter pertaining to section 80G of the Act, also needs to be considered in light of the decision for application under section 12A of the Act.
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In the result, appeals of the assessee stand allowed for statistical purposes.
Order dictated and pronounced in the open court on 01/07/2025.
SD/- SD/- (RAJESH KUMAR) (DUVVURU RL REDDY) Accountant Member VICE PRESIDENT Cuttack: Dated 01/07/2025 B.K.Parida, Sr. PS (OS) Copy of the Order forwarded to : 1. The Appellant : Samprak At: 311/4370, Niladri Vihar, Sailashree Vihar, Bhubaneswar 751021
The Respondent : CIT(Exemption), Hyderabad 3. The CIT(A)-, 4. Pr.CIT- 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// By order Assistant Registrar, Itat, Cuttack
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