Rejection of Application of Exemption claimed u/s 80G of Income Tax Act on account of failure to produce Documentary Evidence: ITAT directs Readjudication [Read Order]

The Income Tax Appellate Tribunal ( ITAT ) of Pune bench while observing the rejection of the application of exemption claimed under Section 80G of the Income Tax Act, 1961 on account of failure to produce the documentary evidence directed readjudication.

The Assessee Sanj Sawali Care Foundation, filed an application for getting  exemption under Section 80 of the Income Tax Act. Unfortunately assessee failed to produce documents with respect to  getting exemption. Therefore the application for getting exemption u/sec. 80G(5) has been dismissed by the CIT(E)

The provisions of Section 80G of the Income Tax Act is a beneficiary provision provided to the trust-society wherein it is a support given from the Government, so that once the said trust or society gets exemption under Section 80G of the Income Tax Act whosoever making donations in the said trust or society, shall get the benefit of 80G while filing their respective income tax returns.

Aggrieved by the assessee filed an appeal before  the tribunal.

The tribunal observed the purpose of the provisions for registration of trust u/sec. 12AA and for granting exemption u/sec. 80G, all these sections derive their spirit from the Directive Principles of State Policy enshrined in the Constitution of India.

Accordingly the ITAT bench of  Sarathi Chaudhury, ( Judicial Member ) & G.D. Padmahshali, ( Accountant Member ) after reviewing the submissions of both parties  remand the matter back to his file to CIT(E) and directed to examining and verifying all documentary evidence furnished by the applicant-assessee.

Bhuvanesh Kankani, counsel appeared for the assessee and Ajay Kumar Kesari, appeared for the revenue.

To Read the full text of the Order CLICK HERE

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