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Facts
The assessee trust filed an application for registration under section 80G of the Income Tax Act. The CIT(E) issued notices requesting specific documents and information regarding the trust's activities and finances. The assessee submitted partial information, and the CIT(E) rejected the application stating that no substantial charitable activities were being carried out.
Held
The Tribunal found that the appellant trust could not place relevant documents before the CIT(E) to prove the bonafides of its charitable activities. Therefore, the Tribunal set aside the impugned orders.
Key Issues
Whether the CIT(E) erred in rejecting the application for registration under Section 80G without considering all submitted documents and whether the assessee's charitable activities are genuine.
Sections Cited
80G
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,
Before: S/SHRI DUVVURU RL REDDY(KZ) RL REDDY(KZ) & RAJESH KUMAR
The present appeal is directed at the instance of assessee against the The present appeal is directed at the instance of assessee against the The present appeal is directed at the instance of assessee against the order of ld. Com order of ld. Commissioner of Income Tax (Exemptions), Hyderabad dated 12/12/2024 in Appeal No. CIT(EXEMTPTION)HYD/2024 CIT(EXEMTPTION)HYD/2024-25/12AA/13036 passed for Assessment Year passed for Assessment Year 2024-25.
P a g e 1 | 4 2., Facts of the case are that the assessee has filed e-applications 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 27.11.2024 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. 2. 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 80G of the Act. Hence, the ld CIT(E) rejected the application for grant of registration u/s 80 G of the Act.
Aggrieved by the order of ld CIT(E), the assessee has filed appeals before the Tribunal.
P a g e 2 | 4
At the time of hearing, ld AR of the assessee submitted that the ld CIT(E) has rejected the application 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 80G of the Act. It was prayed that all the necessary documents in support of registration u/s 80G are available with the assessee and if the matter is restored, the assessee will produce the same 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 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.80G of the Act.
P a g e 3 | 4
In the result, appeals of the assessee stand allowed for statistical purposes.
Order dictated and pronounced in the open court on 01/07/2025.