2025 (8) TMI 584 - AT - Income Tax

ITAT sets aside denial of 80G registration, orders fresh review of charitable society's evidence and submissions

The ITAT Bangalore set aside the order denying registration under section 80G to the charitable society, noting that the CIT(Exemption) failed to consider ... Denial of the registration u/s 80G - assessee is a Charitable Society - HELD THAT:- We observe that the ld. CIT(Exemption) has not pondered upon the documentary evidences filed by the assessee before it. Further, it is not coming out from the order of ld. CIT(Exemption) as to whether the ld. CIT(Exemption) office was in possession of all the material relied upon by the assessee. Therefore, in the interest of justice, we remit this matter back to the file of ld. CIT(Exemption) with a direction to consider the submissions as well as documentary evidences filed by the assessee and decide the matter afresh. Appeal of the assessee is allowed for statistical purposes. The Appellate Tribunal (ITAT Bangalore) heard an appeal against the denial of registration under section 80G of the Income Tax Act, 1961, by the ld. CIT(Exemption). The assessee, a Charitable Society, had applied for registration, but the CIT(Exemption) rejected the application, observing that major expenses were on office management and consultancy services, concluding no charitable activity was conducted. The assessee contended these expenses were linked to charitable activities and that documentary evidence submitted was not properly considered. The Tribunal noted that the ld. CIT(Exemption) failed to 'ponder upon the documentary evidences filed' and did not clarify if all relied materials were before the office. Accordingly, the matter was remitted to the ld. CIT(Exemption) with directions to consider all submissions and evidence and decide afresh 'in accordance with law.' The appeal was allowed for statistical purposes.