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Facts
The assessee, Odisha Rising Foundation Trust, filed an appeal against the order of the Ld. CIT (Exemption) rejecting its application for registration under Section 80G of the Income Tax Act for AY 2025-26. The assessee claimed to have provided all necessary documents and information in response to notices, but the CIT(Exemption) rejected the application citing incomplete information and lack of verification of genuineness of activities.
Held
The Tribunal held that the rejection order by the Ld. CIT (Exemption) was passed without proper application of mind and in violation of principles of natural justice. The Tribunal considered it imperative to grant the assessee another opportunity to file remaining submissions.
Key Issues
Whether the rejection of the 80G registration application by the CIT(Exemption) due to alleged incomplete information was justified, and if the assessee was given a proper opportunity to present their case.
Sections Cited
80G(5)(iii), 80G(5)(ii), 80G(5)(iv)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CUTTACK BENCH AT KOLKATA
Before: SHRI DUVVURU RL REDDY(KZ) & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption)-Hyderabad [hereinafter referred to as the ‘Ld. CIT (Exemption)’] passed in respect of registration u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2025-26 dated 23.10.2024. I.T.A. No.: 546/CTK/2024 Assessment Year: 2025-26 Odisha Rising Foundation Trust.
The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. On the facts and circumstances of the case, the order passed by the learned CIT(Exemption) rejecting the Form-10AB filed u/s 80G(5)(iii) of the Income Tax Act is bad, both in the eye of law and on the facts.
On the facts and circumstances of the case, the learned CIT(E) has erred, both on facts and in law and passed order citing that incomplete information submitted by ignoring the facts that the appellant assessee has made full response to the notices received during the proceedings U/s 80G(5)(iii) of the Income Tax Act with all supporting documents as asked by the Ld CIT(E)
On the facts and circumstances of the case, the learned CIT(E) has erred, both on facts and in law, in ignoring the facts submitted in response to the notices for proceedings U/s 80G(5)(iii) by the assessee that the appellant assessee being a public charitable trust is carrying out the charitable activities with majority of activities under Corporate Social Responsibility with respect to MOUs entered with various organisation.
Further on the facts and circumstances of the case, the learned CIT(E) has rejected the application Form 10AB by citing that incomplete information has been submitted by the appellant in response to the notice issued on 14.10.2024, from which the genuineness of the activities and spending of the trust towards its main objectives could not be verified, whereas the appellant assessee has submitted all documentary evidences with photographs and activities report in support of genuineness of activities carried out.
On the facts and circumstances of the case, the order passed by learned CIT(E) rejecting the application made under section 80G(5)(iii) is not justified and liable to be quashed.
The appellant craves leave to add, amend or alter any of the grounds of appeal.”
Brief facts of the case are that the assessee is a public charitable trust which had obtained provisional approval under section 800G(5)(iv) vide Form No. 10AC vide URN: AAATO7401RF20213 dated 12/11/2021 valid till AY 2024-25. The trust filed Form-10AB U/s 80G(5)(ii) of the Act for regularisation of the provisional approval obtained U/s 80G(5)(iv) on 26/04/2024 within the extended due date of filing on 30/06/2024 I.T.A. No.: 546/CTK/2024 Assessment Year: 2025-26 Odisha Rising Foundation Trust. as per the CBDT Circular no-7/2024 dated 25/04/2024. It is stated that the Ld. CIT (Exemption) issued hearing notices on 08/06/2024 seeking point wise reply from the appellant on various points and in response to the said notice the appellant had submitted all the details asked for with clarification and supporting documents in its written submissions before the Ld CIT (Exemption) on 21/06/2024. Further notices were issued and the details of donors’ list for the last three years was also submitted. In spite of submitting all the information and documents as asked for by the Ld. CIT (E) he has ignored all the documents and evidences submitted in support of the charitable purposes such as CSR activities as per the CSR MOU. It is stated in the body of the order that since the appellant assessee has submitted incomplete information in response to the notice issued on 14.10.2024, from which the genuineness of the activities and spending of the trust towards its main objectives could not be verified, thus rejecting the application Form No.10AB, which is highly unfortunate and is in violation of the principles of natural justice. It is also submitted that the Ld. CIT (Exemption) has passed the rejection order without application of mind by ignoring the evidences submitted by the assessee which are genuine and the assessee was not given an opportunity to put up the case since the Ld. CIT (Exemption) as he never asked as to what information was incomplete on the basis of which the application was rejected since all the information as had been asked for by his office had been duly complied with by the assessee. It is further submitted that it is not out of place to mention here that if some of the information or documents submitted were not up to his satisfaction, the same could have been specifically asked for as additional information in support of the claims made by the appellant. Aggrieved with the order rejecting the I.T.A. No.: 546/CTK/2024 Assessment Year: 2025-26 Odisha Rising Foundation Trust. application for registration under section 80G, the assessee has filed an appeal before the Tribunal.
Rival contentions were heard and the submissions made have been examined. The Bench was of the view that the Ld. CIT(Exemption) had rejected the registration u/s 80G of the Act on account of furnishing incomplete information in response to the notice issued to the assessee and the genuineness of the activities of the Trust could not be verified while the assessee claims that the required documents were filed. Therefore, in the interest of justice, it was considered imperative that the assessee may be granted another opportunity to file its remaining submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and claim of exemption. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and seeking the reply from the assessee in respect of the queries raised and in accordance with law.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23rd May, 2025. [Duvvuru RL Reddy] [Rakesh Mishra] Vice President (KZ) Accountant Member Dated: 23.05.2025 Bidhan (P.S.) I.T.A. No.: 546/CTK/2024 Assessment Year: 2025-26 Odisha Rising Foundation Trust. Copy of the order forwarded to:
Odisha Rising Foundation Trust, Matosree Building, Duplex 4, Centre Point, Saileshree Vihar, Bhubaneswar, Odisha, 751021. 2. CIT (Exemption), Hyderabad.
CIT(A)-
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CIT(DR), Cuttack Bench, Cuttack.
Guard File. //// By order