Denial of S.80G Due to Religious Nature of Objects: ITAT Remits With One More Opportunity Citing Only Two Notices and Natural Justice [Read Order]
The Tribunal granted the assessee one more opportunity to present its case, citing violation of natural justice principles due to only two notices issued and the CIT(E) passing an ex parte order on the same day the assessee submitted its reply.
![Denial of S.80G Due to Religious Nature of Objects: ITAT Remits With One More Opportunity Citing Only Two Notices and Natural Justice [Read Order]](https://images.taxscan.in/h-upload/2025/07/30/2070776-denial-section-80g-taxscan.webp "Denial of S.80G Due to Religious Nature of Objects: ITAT Remits With One More Opportunity Citing Only Two Notices and Natural Justice [Read Order]")
The Surat Bench of the Income Tax Appellate Tribunal (ITAT) remitted the matter for fresh adjudication with one more opportunity citing Natural Justice in the case involving Denial of section 80G for alleged Religious nature of objects. Dharti Ekta Charitable Trust (assessee) filed an application in Form No. 10AB for approval under Section 80G(5)(iii) of the Income Tax Act....
The Surat Bench of the Income Tax Appellate Tribunal (ITAT) remitted the matter for fresh adjudication with one more opportunity citing Natural Justice in the case involving Denial of section 80G for alleged Religious nature of objects.
Dharti Ekta Charitable Trust (assessee) filed an application in Form No. 10AB for approval under Section 80G(5)(iii) of the Income Tax Act. The Commissioner of Income-tax (Exemption), Ahmedabad [CIT(E)], rejected the application concluding that the objects of the trust were religious in nature, contravening the conditions for charitable purposes under Section 80G(5).
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The CIT(E) issued notices however no response or adjournment request from the assessee. Relying on the trust deed and decisions such as Yug Chetna Parmarth Trust and OM Tapovan Charitable Trust, the CIT(E) held that the trust violated Sections 80G(5) and 80G(5)(ii), as it was a religious-cum-charitable entity.
Aggrieved by the CIT(E)’s order, the assessee appealed to the ITAT. The assessee’s counsel submitted a detailed written submission, including the trust deed (English translation), registration under Section 12AB, and the Form No. 10AB application.
The counsel contended that the word "religious" in object clause No. 4 had been deleted via an extraordinary general meeting. The counsel also submitted that the assessee had filed a reply but the CIT(E) passed the order on the same day without considering it. The counsel requested remission for one more opportunity before the CIT(E) in the interest of justice.
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The two-member bench comprising Suchitra Raghunath Kamble (Judicial Member) and Bijayananda Pruseth (Accountant Member) observed that the assessee could not adequately plead its case before the CIT(E) due to limited notices and the ex parte order passed without reviewing the same-day submission.
The bench emphasized that principles of natural justice require granting the affected party sufficient opportunity to be heard. It restored the matter to the CIT(E) for fresh adjudication with a speaking order after affording the assessee a reasonable opportunity.
The assessee was directed to furnish submissions and documents promptly. The appeal was allowed for statistical purposes.
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