Pooja Foundation Vs CIT (Exemptions) (ITAT Chandigarh)
Section 12A/80G Rejection for No Activity Set Aside; Proposed Subsequent Activities Must Be Examined – ITAT Chandigarh
The ITAT, Chandigarh Bench held that registration u/s 12A & 80G cannot be denied merely because activities had not substantially commenced by the date of application. The CIT(E) had rejected registration on the premise that only a single bhandara donation was claimed and it was not reflected in bank statements, and consequently denied 80G as well.
Before the Tribunal, the assessee produced bank statements, explanations of entries & photographs evidencing charitable activities, including activities undertaken after the rejection. Relying on the settled position that “activities” include proposed activities and that the authority must examine genuineness of objects & alignment of activities with those objects, the Bench held that these materials have direct bearing on registration.
Accordingly, the impugned orders were set aside and the matter was restored to CIT(E) for de novo consideration, with a direction to the assessee to plead & prove genuineness forthwith. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
1. In the aforesaid twin appeals, the assessee has assailed rejection of registration applications as filed by the assessee seeking registration u/s 12A(a)(ac)(vi) and 80G of the Act. The impugned orders have been passed by Ld. Commissioner of Income Tax (Exemptions), Chandigarh [CIT(A)] on 04.11.2025.
