Rejection of 80G Renewal over Non-Response to Income Tax Notices in Spam Folder: ITAT Sets Aside CIT(E) Order

Gyanodaya Bharat Trust,appellant-assessee,appealed against the order dated 09.12.2024 passed by the Commissioner of Income Tax (Exemptions), Chennai, rejecting its online application filed on 29.06.2024 in Form 10AB for approval under section 80G of the Act.

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The assessee counsel submitted that the impugned order passed by the CIT(E) was ex parte and stated that the notices issued by the CIT(E) were delivered to the assessee’s spam folder, which led to unawareness of the proceedings. It was argued that the failure to respond was not deliberate and a request was made for one more opportunity to present the case. On the other hand, the Departmental Representative opposed granting another chance.

The two member bench comprising Aby T. Varkey( Judicial Member) and S.R.Raghunatha ( Accountant Member) found that the assessee trust had been granted provisional approval under section 80G(5) and had applied for renewal, which was rejected due to non-response to notices dated 28.10.2024 and 18.11.2024. It was brought to notice that the emails had landed in the trust’s spam folder, and the assessee was unaware of them.

Since the trust was not given a proper opportunity to respond, the tribunal held that there was a violation of naturaljustice. It set aside the CIT(E)’s order and restored the matter for fresh consideration. The assessee was directed to submit all required documents, and the CIT(E) was asked to consider the email ID v.ramachandranoffice@gmail.com for further communication.

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In short,the appeal filed by the assessee was allowed for statistical purposes.

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