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Facts
The assessee, Vidya Vistar Rashtriya Trust, applied for registration under Section 80G(5)(iii) of the Income Tax Act, 1961. The Ld. CIT(E) rejected the application, citing the assessee's failure to provide necessary details and documents to substantiate the genuineness of its charitable activities despite repeated requests.
Held
The Tribunal, noting the assessee's non-appearance, decided to grant one more opportunity in the interest of natural justice. It restored the matter to the Ld. CIT(E) for fresh adjudication on merits, directing the assessee to furnish all required evidences to establish the genuineness of its activities.
Key Issues
Whether the Ld. CIT(E) was justified in denying registration under Section 80G(5)(iii) of the Income Tax Act, 1961, due to the assessee's failure to furnish supporting documents and prove the genuineness of its charitable activities.
Sections Cited
80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI
O R D E R PER MANISH AGARWAL, AM: Captioned appeal is filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Exemption), Delhi [CIT(E), in short] dated 11.11.2024 rejecting the approval/registration sought u/s 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
From the perusal of the order, it is seen that the assessee has filed Form 10AB for granting registration u/s 80G(5)(iii) of the Act. It is further seen that Ld. CIT(E) has denied the registration as the assessee has failed to provide the details as sought for time to time and thus, Ld. CIT(E) was the opinion that the assessee has failed to substantiate the genuineness of its activity.
Vidya Vistar Rashtirya Trust vs. CIT(E) 3. Before us, none appeared on behalf of the assessee and Ld. CIT-DR supported the orders of Ld. CIT(E) and requested confirmation of the same.
We have considered the submissions of ld. CIT DR. From the perusal of the order of Ld. CIT(E), it is seen that Ld. CIT(E) asked the assessee to file details/documents/clarifications in support of its request for approval u/s 80G(5) of the Act. However, the assessee has failed to file such information before the Ld. CIT(E), thus, he observed that the assessee has failed to verify the genuineness of the activities and the fulfillment of all the conditions laid down in clauses (i) to (v) of the Act, registration under clause (ii) of first proviso to section 80G(5) of the Act was denied.
Under these facts and circumstances of the case and in the interest of natural justice one more opportunity is provided to assessee to file all the details as asked by ld. CIT(E) to establish the genuineness of the activities carried out for charitable objects. Accordingly, matter is restored back to the file of Ld. CIT(E) for fresh adjudication on merits in accordance with law after providing reasonable opportunities to the assessee. The assesse is also directed to file the necessary evidences before the Ld. CIT(E) in order to establish the genuineness of its activity. With these directions appeal of the assessee is allowed for statistical purposes.