Tribunal Grants Approval for Charitable Activities, Overturning Previous Rejection Due to Sufficient Evidence Provided.

The ITAT Mumbai allowed the assessee's appeal, setting aside the ld. CIT (A) (Exemptions), Mumbai's order rejecting approval under section 80G. The Tribunal found the rejection unjustified, as the assessee provided sufficient evidence of genuine charitable activities and compliance with section 80G requirements. Approval under section 80G was granted, and the order was pronounced on 18th October 2023.

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Issues:
1. Rejection of support for approval u/s.80G filed u/s.10AB by the ld. CIT (A) (Exemptions), Mumbai.

Analysis:
The Appellate Tribunal ITAT Mumbai heard an appeal filed by the assessee against the rejection of support for approval under section 80G filed under section 10AB by the ld. CIT (A) (Exemptions), Mumbai. The assessee, a company registered under the Companies Act 2013 and granted registration under section 12A for charitable activities, applied for approval under section 80G. The initial provisional approval was granted on 15/10/2021, followed by a subsequent application on 24/08/2022. The ld. CIT issued a notice under section 80G (5)(iii) of the Act on 30/01/2023, seeking details of share transactions and documentary evidence of charitable activities. The ld. CIT rejected the application citing lack of proof of the genuineness of the trust's activities.

The ld. Counsel for the assessee contended that all necessary details and documentary evidence were submitted electronically and physically, including explanations of share transactions treated as corpus for charitable activities. Voluminous evidence of charitable activities was provided, along with proofs of donations made. The ld. CIT was accused of wrongly rejecting the application. The ld. DR suggested re-examining the documents. The Tribunal found the ld. CIT's rejection unjustified, as the charitable activities were genuine, and the required conditions under section 80G were met. Detailed evidence of charitable activities and share transactions was presented, supporting the genuineness of the trust's operations. Consequently, the Tribunal set aside the ld. CIT's order and granted approval under section 80G to the assessee.

In conclusion, the appeal of the assessee was allowed, and the order was pronounced on 18th October 2023.

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