Ex-Parte Rejection of 80G Approval Application Set Aside: ITAT Directs CIT (Exemption) to Re-Examine Takshashila Education and Charitable Trust’s Plea [Read Order]

Takshashila Education and Charitable Trust , represented by Shri Subash Agarwal of Subash Agarwal & Associates, filed Form 10AB seeking 80G approval for donations to its educational activities. The National Faceless Appeal Centre, Delhi, by order dated October 22, 2024, summarily dismissed the application on the grounds that the trust had neither filed submissions nor sought an adjournment, effectively cancelling any provisional approval granted earlier.

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The trust challenged the order before the ITAT on two principal grounds, One, the CIT(E) was unjustified in passing an ex-parte order without affording the trust an opportunity of being heard and the latter, that the CIT(E) had erred in rejecting the 80G application and cancelling the trust’s provisional approval under section 80G(5)(iii).

Upon perusal of the record, the Tribunal noted that notices were issued via email to the trustee but went unheeded due to demonstrable non-receipt by the trust. The trust, on becoming aware of the dismissal, undertook to furnish all necessary details and documentation. The Bench observed that no prejudice would be caused to the revenue if the trust were granted a hearing and ordered that procedural fairness required the application to be heard afresh.

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“On going through the record, we find that no prejudice will be caused to the revenue if the opportunity of being heard is given to the assessee. Hence, we hereby direct that the matter may be examined afresh by the Ld. CIT(E). The assessee shall submit all the details sought by the Ld. CIT(E) from time to time without taking unnecessary adjournments. In the result, the appeal of the assessee is allowed for statistical purposes”, Dr. BRR Kumar, Vice President & Shri T.R. Senthil Kumar, Judicial Member stated.

The Tribunal remitted the application to the CIT(E) for reconsideration, directing the department to issue fresh notices and afford the trust an opportunity to be heard. The Trust must comply promptly with any queries and provide complete documentation to support its eligibility for 80G approval.

Section 80G income tax deductions are vital for charitable organizations fundraising through public donations.

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