Appeal allowed for failure to provide evidence for charitable expenditures under Income Tax Act.

The appeal involved the rejection of approval under section 80G of the Income Tax Act, 1961 by the Ld. CIT(Exemption) due to the assessee's failure to provide credible evidence for claimed expenditures on charitable activities. The Tribunal directed granting the assessee one more opportunity for adjudication on merits, emphasizing the necessity of submitting necessary evidences/documents to satisfy the requirements of Section 80G(5) of the Rules. Ultimately, the appeal was allowed for statistical purposes, highlighting the importance of genuine verification of charitable activities and providing credible evidence for claimed expenditures.

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Issues:
1. Rejection of approval u/s.80G of the Income Tax Act, 1961 by the Ld. CIT(Exemption).
2. Failure to provide supporting evidence for claimed expenditure on activities.
3. Requirement for genuine charitable activities verification for granting exemption u/s.80G.
4. Necessity of providing credible evidences like bills/vouchers for claimed expenditure.
5. Granting one more opportunity to the assessee for adjudication on merits.

Detailed Analysis:
1. The appeal pertains to the rejection of approval u/s.80G of the Income Tax Act, 1961 by the Ld. CIT(Exemption). The assessee filed an adjournment petition, which was rejected. The main grievance of the assessee was the rejection of approval for exemption u/s.80G by the Ld. CIT(Exemption) in the order dated 03.10.2020.

2. The assessee applied for recognition u/s.80G(5)(vi) by filing an online application in Form No.10G within the prescribed time limit. The Ld. CIT(Exemption) requested supporting evidence for claimed expenditure on activities. The assessee failed to comply with the notice, submitting self-made vouchers that were not verifiable. Consequently, the application was rejected due to lack of necessary supporting credible evidence.

3. For granting exemption u/s.80G, it is crucial for the Ld. CIT(Exemption) to ascertain the genuineness of the charitable activities undertaken by the trust/institution. The assessee's inability to provide credible evidence, specifically bills/vouchers for claimed expenditure related to its activities, led to the rejection of the application.

4. The Tribunal observed that one more opportunity should be given to the assessee for adjudication on merits. Considering that Income Tax Legislations are welfare legislations, the matter was remanded back to the Ld. CIT(Exemption) for re-adjudication. The assessee was directed to submit necessary evidences/documents to satisfy the requirements of Section 80G(5) of the Rules.

5. Ultimately, the appeal of the assessee was allowed for statistical purposes, with the order pronounced on 25th June 2021. The Tribunal emphasized the need for providing credible evidence to support claimed expenditures and the importance of genuine verification of charitable activities for granting exemptions under Section 80G of the Income Tax Act, 1961.

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