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Facts
The assessee, an educational school, applied for registration under section 80G. The CIT(Exemption) granted registration under section 12AB but denied 80G registration, finding the activities not genuine despite multiple opportunities. The assessee failed to comply with notices and provide required documentation.
Held
The Tribunal noted that the impugned order was ex-parte and while section 12AB registration was granted, 80G registration was denied due to lack of perceived genuineness. In the interest of justice, the Tribunal decided to set aside the order.
Key Issues
Whether the denial of 80G registration by the CIT(Exemption) was justified given the assessee's non-compliance with notices and lack of evidence regarding the genuineness of its activities.
Sections Cited
80G, 12A(1)(ac)(ii)
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Income Tax Appellate Tribunal, KOLKATA-CUTTACK ‘e-COURT’, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Rakesh Mishra
Per Duvvuru RL Reddy, Vice-President (KZ):- The present is directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Exemption), Hyderabad (A.Y. 2025-2026) Saraswati Shishu Vidya Mandir dated 12th December, 2024 passed for Assessment Year 2025-26 on the application of the assessee filed in Form No. 10AB for registration under section 80G of the Income Tax Act. In other words, the ld. CIT(Exemption) has granted 12AB registration but failed to appreciate the genuineness of the activities and denied the 80G registration of the assessee. .
Brief facts of the case are that the assessee is an Educational School. The ld. CIT(Exemption) failed to appreciate that the activities of the Trust are genuine and being carried out in accordance with the objectives stated in its bye-laws. Notices were issued in respect of proceedings under section 12A(1)(ac)(ii) of the Act to the address of the assessee mentioned in the Form No. 10AB to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notices. In response to the notices, the assessee-Trust submitted partial information only. Thereafter notice dated 26.11.2024 was issued to the assessee as a final opportunity to submit the other information also along with the reply to the above notice including relevant documentary evidences i.e. copy of latest three months GST returns, list of donors in respect of 80G claim, furnishing the documentary evidences with regard to expenditure incurred for the objectives as per Trust Deed/Memorandum of Association, but there was no compliance to the notices.
The ld. CIT(Exemption) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed (A.Y. 2025-2026) Saraswati Shishu Vidya Mandir the written submission nor represented the case before the ld. CIT(Exemption). The ld. CIT(Exemption) passed the ex-parte order dated 12.12.2024 dismissing the appeal of the assessee.
Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred appeal before the Tribunal.
At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Exemption) for deciding it afresh.
The ld. D.R., on the other hand, submitted that the assessee should be more vigilant about its obligation towards prosecuting income tax proceedings. He argued to uphold the order passed by the ld. CIT(Exemption).
We have duly considered the rival contentions and gone through the record carefully. The impugned order is ex-parte order wherein application of the assessee for grant of registration under section 12AB have been accepted but denied the 80G registration for want of genuineness of the activities of the educational Institution. In the interest of justice, we deem it appropriate to set aside the order and remit the issue to the ld. CIT(Exemption) for fresh adjudication.