ITAT Restores 80G Registration Application of Trust: Tribunal Gives Second Chance, Ensuring Fair Hearing [Read Order]
The tribunal ordered the CIT(E) to provide one final opportunity for a hearing to the Trust. The Trust is to submit all relevant documents and ensure full compliance
![ITAT Restores 80G Registration Application of Trust: Tribunal Gives Second Chance, Ensuring Fair Hearing [Read Order]](https://images.taxscan.in/h-upload/2025/06/12/2042944-itat-ahmedabad-restores-80g-registration-taxscan.webp "ITAT Restores 80G Registration Application of Trust: Tribunal Gives Second Chance, Ensuring Fair Hearing [Read Order]")
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has restored the assessee Trust’s application for registration under Section 80G of the Income Tax Act, 1961, back to the file of the Commissioner of Income Tax (Exemptions) [CIT(E)]. The Bench held that principles of natural justice must prevail and granted the Trust one final opportunity to present its...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has restored the assessee Trust’s application for registration under Section 80G of the Income Tax Act, 1961, back to the file of the Commissioner of Income Tax (Exemptions) [CIT(E)]. The Bench held that principles of natural justice must prevail and granted the Trust one final opportunity to present its case.
Sant Kanwarram Sewa Trust, located in Gandhinagar, Gujarat, had initially received provisional registration under Section 80G. This benefit allows donors to claim tax deductions on contributions made to the Trust. However, when the time came for final registration, the CIT(E) denied it, citing non-compliance and failure to submit necessary documentation during the hearings.
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According to the records, the CIT(E) had issued hearing notices on October 5, 2024, and November 8, 2024. The Trust, however, failed to respond on both occasions. This led the CIT(E) to cancel the provisional registration and reject the application under Section 80 G of the Income Tax Act.
The Authorised representative (A.R.) of the assessee submitted that the Trust was now in possession of all the requisite documents, which it had been unable to submit earlier. He requested the Tribunal to provide one final opportunity to present the material before the CIT(E), thereby allowing the Trust to rectify its earlier lapse. On the other hand, the Revenue relied on the CIT(E)’s order and did not object to the remand, provided the assessee was directed to comply promptly.
Taking note of the submissions and the documents placed on record, the ITAT was of the view that denying registration solely on procedural lapses would be unjust, especially since the assessee was now prepared to furnish the relevant details. The Tribunal emphasised that the principle of natural justice mandates that a party be given a fair opportunity to be heard, especially in matters where denial of relief may have long-term financial implications.
The ITAT set aside the order and remanded the matter to the CIT(E) with specific instructions. The CIT(E) is to provide one final opportunity for a hearing to the Trust. The Trust is to submit all relevant documents and ensure full compliance. The CIT(E) was advised to dispose of the matter on merits and by the law.
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The Bench, comprising Dr. B.R.R. Kumar (Vice President) and T.R. Senthil Kumar (Judicial Member), also cautioned the Trust to treat this opportunity as final and to ensure full cooperation during the proceedings. The appeal was allowed for statistical purposes, keeping the door open for the Trust to secure its 80G status, provided it adheres to the prescribed legal and procedural framework.
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