Aacharya Shri Rushirajbaba Pratishahan Vs CIT (ITAT Nagpur)
The Income Tax Appellate Tribunal (ITAT), Nagpur Bench, has set aside an order by the Commissioner of Income Tax (Exemption) [CIT(E)], Pune, that rejected the application for 80G registration by Aacharya Shri Rushirajbaba Pratishahan for the assessment year 2022-23. The Tribunal has directed the CIT(E) to reconsider the application, emphasizing the need to provide the assessee with a fair opportunity to present their case.
The charitable trust, Aacharya Shri Rushirajbaba Pratishahan, had appealed the CIT(E)’s order dated September 28, 2024, arguing that the rejection was based on a failure to consider submitted details, an erroneous classification of its activities as religious instead of charitable, and a lack of sufficient opportunity for a hearing.
The CIT(E)’s order outlined several discrepancies and reasons for the rejection. Initially, a notice was issued on August 5, 2024, highlighting concerns regarding the trust’s 12AB registration. The CIT(E) noted that the trust appeared to have obtained 12AB registration without prior 12A/12AA registration before April 1, 2021, suggesting a potential misrepresentation of facts and invalid registration, which would violate Section 80G(5)(i) of the Income Tax Act, 1961.
Further issues raised by the CIT(E) included the trust’s failure to provide a detailed note on actual activities carried out as required by Rule 17A(2)(k) of the Income Tax Rules, 1962. The CIT(E) stated that supporting evidence such as bills, photographs, and details of activities over the past three years or since inception were not submitted. This absence of tangible material hindered the CIT(E)’s ability to ascertain the charitable nature of the trust’s activities.
