Sportiva Wings Foundation Vs CIT (ITAT Jaipur)
Non-Compliance With Two Notices Not Enough to Shut the Door: Jaipur ITAT Restores Section 12A and 80G Applications
Summary:
The Jaipur Bench of the Income Tax Appellate Tribunal considered two appeals filed by Sportiva Wings Foundation against separate orders dated 09.02.2026 passed by the CIT (Exemption), rejecting the assessee’s applications seeking registration under Section 12AA and approval under Section 80G of the Income Tax Act, 1961. The two appeals were heard together because the issues were interlinked, with approval under Section 80G primarily dependent upon registration under Section 12AA. Section 12AA concerns registration of charitable or religious trusts or institutions.
The CIT (Exemption) had rejected both applications on the ground that the assessee failed to comply with notices issued by the authority. Consequently, according to the CIT(E), it could not be established or determined whether the assessee was genuinely carrying out charitable activities in accordance with its objects. The CIT(E) further noted that the assessee had failed to regularize the provisional registration earlier granted to it and therefore considered that the genuineness of its activities had not been subjected to verification after provisional registration.
Before the Tribunal, the assessee submitted that it had earlier been granted provisional registration but failed to regularize the same within the prescribed time. It therefore filed fresh applications seeking registration under Section 12A and approval under Section 80G. The assessee contended that it had not been given an adequate opportunity to demonstrate the genuineness of its activities. According to the assessee, only two notices had been issued, both of which were reproduced in the CIT(E)’s order, and the opportunity provided was insufficient. It accordingly sought restoration of both matters to the CIT(E) so that it could satisfy the authority regarding the genuineness of its activities and pursue registration under Section 12A and approval under Section 80G.
Section 80G provides tax deduction benefits in respect of donations made to specified funds and charitable institutions and involves prescribed conditions for eligible institutions. The Tribunal considered the assessee’s submissions and noted that the applications for registration under Section 12A and approval under Section 80G had been rejected on the ground that the genuineness of the activities had not been established solely because of the assessee’s non-compliance with the notices issued by the CIT(E). The Tribunal was therefore inclined to restore both matters to the file of the CIT(E) for fresh consideration.
The Tribunal directed the CIT(E) to consider the applications afresh after giving the assessee due opportunity of hearing. Thus, the Tribunal did not finally grant registration under Section 12A or approval under Section 80G on merits. Instead, it restored the matters to the first appellate/exemption authority for reconsideration after providing an adequate opportunity to the assessee.
In the result, both appeals filed by Sportiva Wings Foundation were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
Both the appeals relate to the same assessee and are against separate orders passed by the CIT (Exemption) (hereinafter referred to as “Ld. CIT(E)”), both dated 09.02.2026 for rejecting assessee’s application seeking registration under Section 12AA of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) and approval under Section 80G of the Act. The grant of approval u/s 80G of the Act is primarily passed on the availability of registration u/s 12AA of the Act. Since the issues involved in the appeals are interlinked, both the appeals were taken up for hearing together and disposed of by this common order.
2. Order of the Ld. CIT(E) reveals that both the application of the assessee seeking approval u/s 12A and 80G of the Act were rejected since the assessee had failed to comply with the notices issued by the Ld. CIT(E), and therefore it could not be established and determined, whether the assessee was genuinely carrying out charitable activities as per its object. Further the Ld. CIT(E) noted that the assessee had failed to regularize the provisional registration granted to it earlier and therefore, also he held the genuineness of the activities tohave not been subjected to verification after the grant of provisional registration.
3. Ld. Counsel for the assessee contended before us, that the assessee had earlier been granted provisional registration, but it failed to regularize it within the time provided as per law. Therefore, the assessee had filed an application afresh seeking registration u/s 12A and U/s 80G of the Act. He contended that he has remained unheard and has not been given adequate opportunity to demonstrate the genuineness of the activities carried out by it. He pointed out that only two notices were issued to the assessee which are reproduced in the order of the Ld. CIT(E), and therefore he contended that adequate opportunity of hearing was also not afforded to assessee. He pleaded restoration of both the matters back to the file of the Ld. CIT(E), so as to satisfy the Ld. CIT(E) about the genuineness of the activities carried out by it and seek registration u/s 12A and 80G of the Act.
4. Considering the averments of the Ld. Counsel for the assessee as above and noting that the assesses application seeking registration u/s 12A of the Act and approval u/s 80G of the Act has been rejected on account on the ground of genuineness of its activities not being established solely due to non compliance by the assessee applicant to notices issued to it, we are inclined to restore the matters back to the file of Ld. CIT(E) to be considered afresh after giving due opportunity of hearing to the assessee.
5. In effect, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the Open Court on 25.08.2026.
