Case Law Details
Rishi Samskruti Vidya Kendra Vs CIT (Exemptions) (ITAT Bangalore)
Income Tax Appellate Tribunal (ITAT), Bangalore Bench, has set aside an order by the Commissioner of Income Tax (Exemptions) [CIT(E)] that cancelled the 80G approval for Rishi Samskruti Vidya Kendra. The Tribunal acknowledged the assessee’s non-appearance was due to a trustee’s severe medical emergency, restoring the matter to the CIT(E) for re-adjudication.
The case, heard by the ITAT, stemmed from an appeal filed by Rishi Samskruti Vidya Kendra against the CIT(E)’s order dated December 23, 2024. The assessee trust had initially secured registration under Section 12A of the Income Tax Act, 1961, effective from Assessment Year (AY) 2022-23 to 2026-27, and provisional approval under Section 80G, valid until AY 2024-25.
Subsequently, the trust applied for final 80G approval on June 29, 2024, by filing Form 10AB. The CIT(E) issued notices on October 18, 2024, and November 8, 2024, providing opportunities for a hearing. However, the assessee failed to respond to these notices or appear for the proceedings. Consequently, the CIT(E) concluded that the trust had not submitted the necessary documentation to substantiate the genuineness of its activities and fulfill the conditions stipulated under Section 80G of the Act. This led to the rejection of the application and the cancellation of the provisional 80G approval.
During the appeal before the ITAT, the assessee’s representative presented an affidavit dated April 19, 2025, and a medical certificate dated November 5, 2024. It was submitted that the trustee responsible for the trust’s financial and statutory affairs, a 76-year-old individual, had suffered a severe anterior cruciate ligament tear in the right knee due to a fall. This injury necessitated three months of complete bed rest, rendering the trustee unable to attend the hearings before the CIT(E). The assessee sought another opportunity to present its case.
The ITAT, after reviewing the submissions and corroborating medical evidence, found the reason for non-appearance to be genuine. Emphasizing the principles of natural justice and fair play, the Tribunal deemed it appropriate to remit the entire issue back to the CIT(E). This decision ensures that the assessee is granted a reasonable opportunity to be heard and to submit all requisite details, documents, and financial records necessary for the 80G approval. The Tribunal also directed the assessee to cooperate fully with the CIT(E) and avoid unnecessary adjournments for an expeditious disposal of the matter.
The appeal was thus partly allowed for statistical purposes, marking a procedural victory for the assessee trust.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against the order of ld. CIT(Exemptions), Bangalore dated 23.12.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1071454641(1) cancelling the approval u/s 80G of the Income Tax Act, 1961 (in short “The Act”).
2. The assessee has raised the following grounds of appeal:
3. Brief facts of the case are that assessee trust was granted registration in form no.10AC on 31.12.2021 under sub-clause (i) of clause (ac) of sub-section (1) of section 12A of the Act effective from AY 2022-23 to AY 2026-27 vide Unique registration no.(URN) AAATR5594AE19826. The assessee trust has also been granted provisional approval under clause (iv) of first proviso to sub-section (5) of section 80G of the Act on 31.12.2021 effective from 31.12.2021 to AY 2024-25. Thereafter, the assessee trust applied for final approval u/s 80G of the Act on 29.6.2024 in form no.10AB. The ld. CIT(Exemptions) had granted opportunity of being heard vide notices dated 18.10.2024 and 8.11.2024. However, the assessee had not responded to any of the notices. The ld. CIT(Exemptions) is of the view that the assessee was mandated to submit necessary documents to prove the genuineness of the activity of the trust and
fulfillment of all the conditions laid down in clauses (i) to (v) of section 80G of the Act. In the present case, as the assessee had not responded and failed to appear and submit the necessary details/documents called for, the ld. CIT (Exemptions) accordingly rejected the application filed in form no.10AB dated 29.6.2024 and cancelled the approval.
4. Aggrieved by the order ld. CIT(Exemptions) dated 23.12.2024 cancelling the registration u/s 80G of the Act, the assessee has filed the present appeal before this Tribunal. The assessee has also filed a paper book comprising 30 pages containing therein affidavit, medical certificate, order for registration u/s 12A of the Act, order for provisional approval u/s 80G of the Act, form 10BB, financial statement for AY 2024-25.
5. Before us, the ld. A.R. of the assessee vehemently submitted that the trustee who was in-charge of the financial affairs as well as statutory affairs of the trust, had fallen while climbing a stair case resulting in severe injury and accordingly the doctor had advised for complete bed rest for 3 months. Further, ld. A.R. of the assessee submitted that trustee being 76 years of age and because of the severity of injury could not represent the case of the trust before the ld. CIT(Exemptions) and accordingly prayed for one more opportunity before the ld. CIT(Exemptions) to represent its case.
6. Ld. D.R. on the other hand, relied on the order of the authority below.
7. We have heard the rival submissions and perused the materials available on record. It is undisputed fact that assessee trust could not represent its case before the ld. CIT(Exemptions) as the trustee of the assessee trust who was looking after the financial and statutory affairs of the trust was diagnosed with anterior cruciate ligament tier of the right knee and the doctor has advised for complete bed rest for 3 months. Before us, The trustee of the assessee trust has also filed an affidavit in original dated 19.4.2025 stating therein the reason stated above. Further, to corroborate his claim a medical certificate dated 5.11.2024 is also produced before us. This being so, in the interest of justice and fair play and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT (Exemptions) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to produce/submit all the necessary details/documents/records/financials/reports in support of its claim or as may be required by the ld. CIT (Exemptions) for granting approval u/s 80G of the Act. The Assessee Trust shall not take any unnecessary adjournments & cooperate with the Authority for the early disposal. It is ordered accordingly.
8. In the result, appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced in the open court on 25th June, 2025
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