Rotary Bangalore Orion Gateway Trust Vs ITO (Exemptions) (ITAT Bangalore)
Leadership Changeover Excuse Accepted – Natural Justice Violated – Tribunal Sends Rotary Trust’s 80G Back for Fresh Look
Bangalore ITAT in the case of Rotary Bangalore Orion Gateway Trust, Rajajinagar Vs ITO (Exemptions), dealt with cancellation of approval u/s 80G. Assessee, a public charitable trust formed on 08.06.2019, was granted provisional approval u/s 80G(5) on 23.09.2021, valid up to AY 2024-25. On 29.06.2024, it filed application in Form 10AB seeking final approval. CIT(E) issued notices dated 18.10.2024 & 09.11.2024 calling for documents, but Assessee did not respond. Consequently, CIT(E) cancelled the approval on 04.12.2024, holding that Assessee failed to establish genuineness of its activities.
Before Tribunal, Assessee submitted that cancellation was hasty & mechanical without providing a final opportunity of hearing, amounting to violation of principles of natural justice. It explained that due to the annual changeover of office bearers in June 2024, there was a lapse in internal coordination, resulting in non-compliance with notices. Assessee also filed minutes of board meetings & proof of charitable activities, praying for one more opportunity to substantiate its case.
Tribunal noted that CIT(E) had rejected the application solely for non-response without giving a final opportunity. This, it held, was a gross violation of natural justice. Considering Assessee’s explanation & readiness to produce documents, Tribunal restored the matter to CIT(E) for fresh adjudication. It directed CIT(E) to provide reasonable opportunity of being heard & examine all documents, while also warning that in case of further default, no leniency would be shown. Accordingly, Tribunal partly allowed the appeal for statistical purposes, remanding the case back to CIT(E) for fresh decision in accordance with law.
