We Can Vs CIT (E) (ITAT Amritsar)
Mere Inception Not Enough, But Objects Matter: Amritsar ITAT Gives Fresh Opportunity to Charity
The Amritsar Bench of the ITAT, in We Can vs CIT(E), Chandigarh (ITA Nos. 71 & 72/Asr/2025), set aside the rejection of registration u/s 12AB and consequential denial of approval u/s 80G, and remanded the matters to the CIT(E) for fresh consideration.
The Assessee, a charitable society registered on 09.03.2021, had applied for registration u/s 12A(1)(ac)(iii). The CIT(E) rejected the application on the ground that no substantial charitable activity had been carried out since inception, except a single financial assistance of ₹5,200 for a needy person’s marriage, and that supporting photographs were not furnished. Consequently, approval u/s 80G was also denied.
Before the Tribunal, the Assessee produced bank statements, receipts, and audit report, and pleaded that further charitable activities had been carried out in subsequent periods, though evidence was not earlier furnished. Considering the noble charitable objects of the society—child labour welfare, medical assistance, care for depressed and helpless persons, and education—the ITAT held that the Assessee deserved one further opportunity to substantiate activities with documentary evidence and photographs.
Accordingly, the ITAT remanded the matter to the CIT(E) with a direction to grant a fair opportunity and examine subsequent-year activities as well, clarifying that satisfaction for grant of registration u/s 12AB lies solely with the CIT(E). The 80G application was also remanded to be decided afresh in tandem with the 12AB proceedings. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
