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Facts
The assessee trust filed e-applications for registration under Sections 12A and 80G. The CIT(E) issued notices seeking specific information and documents, including financial statements, GST returns, donor lists, and evidence of expenditure for charitable activities. The assessee submitted partial information, and the CIT(E) observed that substantial charitable activities were not being carried out, leading to the rejection of the applications.
Held
The Tribunal noted that the appellant trust failed to provide relevant documents to the CIT(E) to substantiate its charitable activities. Consequently, the Tribunal set aside the orders of the CIT(E) and remanded the matters back for reconsideration of the claims for provisional registration under Section 12A and also for considering the application under Section 80G.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration under Section 12A and 80G without proper consideration of the assessee's submissions and evidence, and whether the activities undertaken were charitable in nature.
Sections Cited
12A, 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 (Appeals), National Faceless Appeal Centre (NAFC), New Delhi NFAC), Delhi dated 20/12/2024 in Appeal Nos.CIT(EXEMPTION)HYD/2024-25/12AA/11725,CIT(EXEMPTION)HYD/2024- 25/12AA/12994 passed for Assessment Year 2024-25.
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Facts of the case are that the assessee has filed e-applications in Form No.10AB seeking registration u/s. 12A 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 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 12A and 80G of the act. Hence, the ld CIT(E) rejected the application for grant of registration u/s. 12A 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 12A and 80G of the Act. It was prayed that all the necessary documents in support of registration u/s.12A 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.12A. 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) ACOUNTANNT MEMBER VICE PRESIDENT Cuttack: Dated 01/07/2025 B.K.Parida, Sr. PS (OS) Copy of the Order forwarded to : 1. The Appellant : Kalinga Desiagra Foundation Khatbin Sahi, Knika Road, Petrol Pump, Tulsipur, Cuttack, 753008
The Respondent : ITO, Exemption, Cuttack 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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