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Facts
The assessee applied for registration under section 80G of the Income Tax Act, 1961, which was rejected by the CIT(E) on grounds of alleged non-compliance and a non-speaking order. The assessee contended that they had submitted extensive documentation and already held registration under section 12A of the Act for charitable activities.
Held
The Tribunal found that the CIT(E)'s order was non-speaking and noted the assessee's existing 12A registration, which implied satisfaction with their charitable activities. It also highlighted the casual approach of the CIT(E) in issuing a notice under an incorrect section (14A instead of 80G). Consequently, the tribunal restored the matter to the CIT(E) for fresh consideration of the 80G application, directing them to provide a proper opportunity of hearing and examine all submitted documents.
Key Issues
Whether the CIT(E) was justified in rejecting the application for 80G registration without specifying deficiencies or providing adequate opportunity of hearing, especially given the assessee's prior 12A registration and extensive documentation.
Sections Cited
80G, 80G(5)(iv), 12A, 14A
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
(िनधा�रण िनधा�रण िनधा�रण वष� िनधा�रण वष� वष� / Assessment Year : 2025-2026) वष� Saraswati Sangha, Vs CIT(Exemption) Hyderabad Barpali, Canal Road, C/o Little Angles Public School, Dist: Bargarh, Odisha-768029 PAN No. : AAQAS 8141 K (अपीलाथ� अपीलाथ� /Appellant) (��यथ� ��यथ� / Respondent) अपीलाथ� अपीलाथ� ��यथ� ��यथ� .. िनधा�रती िनधा�रती क� िनधा�रती िनधा�रती क� क� ओर क� ओर ओर सेसेसेसे /Assessee by ओर : Shri Tanmay Jain, CA (Appeared through Video Conference) राज�व राज�व क� राज�व राज�व क� क� ओर क� ओर ओर सेसेसेसे /Revenue by ओर : Shri Saroj Kumar Dubey, CIT-DR सुनवाई क� तारीख / Date of Hearing : 27/01/2025 घोषणा क� तारीख/Date of Pronouncement : 27/01/2025 आदेश / O R D E R आदेश आदेश आदेश Per Bench : The present appeal is filed by the assessee against the order of ld. CIT(E), Hyderabad, passed in Application No.CIT(Exemption), HYD/2024- 25/12AA/11040, vide DIN & Order No.ITBA/EXM/F/EXM45/2024- 25/1069233331(1), dated 28.09.2024, on the following grounds 1. The learned CIT(Exemption) erred in law by passing a non- speaking order dated 28.09.2024 rejecting the application under section 80G, without specifying particular deficiencies or examining the extensive documentation already submitted, thereby violating principles of natural justice. The appellant is eligible for approval under section 80G.
2. The learned CIT(Exemption) erred in law and acted with patent non- application of mind in rejecting the application under section 80G when the same authority had granted registration under section 12A based on substantially similar documentation, which conclusively proves that essential information regarding charitable activities was already available on record.
3. The learned CIT(Exemption) erred in law by treating the application as "infructuous" based on alleged non- compliance with the vague notice dated 19.09.2024 (issued 29.04.2024 effectively and 29.05.2024, denying opportunity of being heard. reasonable 4. The learned CIT(Exemption) erred in law by mechanically rejecting the application on technical grounds, contrary to settled principles that registration/approval under charitable provisions should not be rejected when substantial compliance is demonstrated.
5. The appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal before or during the hearing of the appeal.
Brief facts of the case are that the assesee has filed an application electronically in Form No.10AB seeking registration u/s.80G of the Act, 1961. The ld. CIT(E) asked the assesee 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 notice dated 29.04.2024 & 29.05.2024. However, the ld. CIT(E) found that the assesee could only be able to file part information and neither the assesee could be able to comply fully with the notices issued in respect of proceedings u/s.80G(5)(iv) of the Act. Accordingly, the ld. CIT(E) rejected the application in form 10AB for registration u/s.80G of the Act. Thus, the present appeal is filed by the assesee before us.
During the course of hearing, ld. AR submitted that the impugned order passed by the ld. CIT(E) is a non-speaking order thereby rejecting the application under section 80G, without specifying particular deficiencies or examining the extensive documentation already submitted, which amounts to violation of principles of natural justice. It was submitted by the ld. AR that the registration u/s.12A of the Act has already been granted in favour of the assesee vide order dated 02.08.2024 by the same same. He further submitted that the assesee on two earlier occasions had made complete replies vide acknowledgements dated 14.05.2024 and 03.06.2024 in response to the notices dated 29.04.2024 and 29.05.2024, respectively. The acknowledgements to the said replies are as under :-
Thus, the ld. AR submitted that assesee has replied all the questions raised and ld. CIT(E) is not correct in observing that assesee has not filed details as observed in notice dated 19/09/2024 and in the order rejecting the registration u/s.80G of the Act. Accordingly, it is requested that the assesee is eligible for approval u/s.80G of the Act.
Ld. CIT-DR objected to the above contention of the ld.AR and submitted that sufficient opportunity was provided by the ld.CIT(E), however, the assessee could not substantiate its claim. Therefore, it was dismissed.
We have heard the rival submissions and perused the material available on record. A perusal of the impugned order passed by the ld. CIT(E) shows that the CIT(E) denied the registration as the assessee could not submit any information or documentary evidences in regard to the claim of the assessees for approval u/s.80G of the Act. However, the ld.AR before us submitted that the assesee-trust is having registration u/s.12A of the Act on 02.08.2024. He also drew our attention to the said registration granted u/s.12A of the Act copy of which is placed in the paper book at pages 46 to 49. Further, from the perusal of two replies filed by the assesee on 14.05/2024 & 03/062024, we find that the assesee has replied to each single query, these replies are available in the paper book pages 7 to 27 and 32 to 43 respectively. Further from the perusal of final notice dated 19/09/2024 issued u/s.14A of the Act which is available in paper book pages 44 to 45, it is seen that the ld. CIT(E) without verifying the details already filed by the assesee again sought same information. Further the notice was issued u/s.14A of the Act though the proceedings are with regard to registration u/s.80G of the Act, which clearly suggests the casual approach of the ld. CIT(E) in dealing the issues pending before him. In view of the above, we are of the opinion that when the revenue authority has already granted registration u/s.12A of the Act in favour of the assesee, it presumes that the revenue authority is satisfied with the charitable activities carried on by the assesee trust. ld.CIT(E) to grant of approval u/s.80G of the Act to consider the details filed by the assesee in both the replies and may ask any further details, if needed, after providing sufficient opportunity of being heard to the assessee. The assessee is directed to submit all the required documents before the ld.CIT(E) for early disposal of the application.
In the result, appeal of the assesee is allowed for statistical purposes.
Order pronounced in the open court on 27/01/2025.