AKASH MEMORIAL CHARITABLE TRUST,G B NAGAR vs. CIT(E), LUCKNOW

This appeal, by the assessee is directed against the order of the Learned Commissioner of Income-tax (Exemptions), Lucknow dated 28.11.2024 whereby the Ld. CIT(E) dismissed the assessee’s application for registration u/s 80G(5) of the Income Tax Act, 1961 (“Act’, for short). The assessee has raised the following grounds of appeal: -

The Ld. Counsel for the assessee vehemently argued that the action of the Ld. CIT(E) is arbitrary and against the facts of the case. Ld. Counsel further reiterated the submissions as made in the written submissions. He further contended that the Ld. CIT(E) failed to consider the supporting evidences filed by the assessee. The Ld. Counsel contended that the Ld. CIT(E) was not justified in denying registration under section 80G of the Act, particularly when approval under section 12AB of the Act had already been granted by the same authority vide order dated 27.06.2024, and the material facts were not duly considered while passing the impugned order. Therefore, he prayed that the Page 3 of 4 order of the Ld. CIT(E) may be set aside and the Ld. CIT(E) be directed to grant registration u/s 80G(5) of the Act.

On the other hand, the Ld. CIT-DR opposed the submissions and supported the order of lower authorities and submitted that there is no infirmity in the order of the Ld. CIT(E).

We have heard rival submissions and perused the material available on record. It is found the Ld. CIT(E) rejected the appellant’s application seeking registration u/s 80G(5) of the Act on the ground that the assessee had failed to furnish the requisite documentary evidences which could enable him to satisfy himself regarding the genuineness as well as the commencement of the charitable activities by the assessee and to verify whether such activities were in consonance with the stated objects of the trust. It is further noted from the record that the Ld. CIT(E) provided two opportunities vide notice dated 19.11.2024 fixing the case for compliance on 25.11.2024 for furnishing the details called for. However, the assessee failed to comply with the said notice. Thereafter, no further opportunity was granted to the assessee before passing the impugned order. Considering the totality of the facts and in the interest of natural justice, we are of the considered view that the assessee should have been given an opportunity to represent its case. Therefore, the impugned order passed by the Ld. CIT(E) is set aside and the application for registration u/s 80G(5) of the Act is restored to the file of the Ld. CIT(E) for decision afresh, of course, after providing adequate opportunity of being heard to the assessee. The assessee would furnish requisite evidence in support of its claim regarding its activity. Grounds of appeal of the assessee are allowed for statistical purposes.