SARASWATI SANGHA,BARPALI, BARGARH, ODISHA vs. INCOME TAX OFFICER,EXEMPTION WARD, CUTTACK
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
आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण, कटक कटक �यायपीठ �यायपीठ,कटक आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण कटक कटक �यायपीठ �यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.486/CTK/2024 (ि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
2 ITA No.486/CTK/2024 during peak audit season), despite substantial compliance with earlier notices dated 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
3 ITA No.486/CTK/2024 incumbent and the facts and circumstances and the details filed are
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 :-
4 ITA No.486/CTK/2024
5 ITA No.486/CTK/2024
6 ITA No.486/CTK/2024 Reply dated 03/06/2024 vide following acknowledgement :-
7 ITA No.486/CTK/2024
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
8 ITA No.486/CTK/2024 the prayer of the ld. CIT-DR that the appeals of the assessees should be
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.
9 ITA No.486/CTK/2024 Accordingly, in the interest of justice, we restore the issue to the file of
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.
Sd/- Sd/- (GEORGE MATHAN) (MANISH AGARWAL) लेखा सद�य/ ACCOUNTANT MEMBER �याियक �याियक सद�य �याियक �याियक सद�य सद�य / JUDICIAL MEMBER सद�य कटक Cuttack; �दनांक Dated 27/01/2025 कटक कटक कटक Prakash Kumar Mishra, Sr.P.S. आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत अपीलाथ� / The Appellant- 1. Saraswati Sangha, Barpali, Canal Road, C/o Little Angles Public School, Dist: Bargarh, Odisha-768029 ��यथ� / The Respondent- 2. CIT(Exemption) Hyderabad आयकर आयु�(अपील) / The CIT(A), 3. आयकर आयु� / CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, कटक कटक कटक / DR, ITAT, कटक 5. Cuttack गाड� फाईल / Guard file. 6. स�यािपत �ित //True Copy// आदेशानुसा आदेशानुसार/ BY ORDER, आदेशानुसा आदेशानुसा
(Assistant Registrar) आयकर अपीलीय अिधकरण, कटक/ITAT, Cuttack
