LIFE ETERNAL TRUST,NASHIK V. CIT EXEMPTION , PUNE

ITA 916/PUN/2025

AI Insights

The case involves Life Eternal Trust, which appealed against the decision of the CIT(Exemption), Pune, rejecting their application for approval under section 80G of the Income Tax Act, 1961. The trust aimed to spread awareness of yoga and mental health among the youth and provided educational materials and health checkup programs to the needy. The CIT(Exemption) rejected the application due to insufficient evidence of the trust's activities, such as lack of signboards in photographs and absence of credible evidence like bills or vouchers to support the claimed expenses. The Tribunal, considering the submissions and the interest of justice, decided to allow the appeal for statistical purposes and restore the matter to the CIT(Exemption) for a fresh decision after further submissions by the trust.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774898 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 03-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: BHUVANESH KANKANI
• Keywords: Opportunity of being heard
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.916/PUN/2025 Life Eternal Trust 1016, Shukla Lane, Nashik – 422001 Vs. CIT(Exemption), Pune PAN: AAATL3389H (Appellant) (Respondent) Assessee by : Shri Bhuvanesh Kankani Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 20-08-2025 Date of pronouncement : 01-09-2025 O R D E R PER R.K. PANDA, VP: This appeal filed by the assessee is directed against the order dated 25.09.2024 of the Ld. CIT(Exemption), Pune rejecting the application for grant of approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 31.03.2024 for approval of the trust under clause (iii) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G of the Act, a notice was issued through ITBA portal on 31.05.2024 requesting the assessee to upload certain information / clarification. In Printed from counselvise.com 2 ITA No.916/PUN/2025 response to the same the assessee filed various details. On verification of various details filed by the assessee the Ld. CIT(E) noticed various discrepancies for which he issued another notice to the assessee pointing out the discrepancies in response to which the assessee filed the requisite details. It was further submitted that the trust is mainly formed to spread awareness of Yoga and to spread healthy awareness in the society. The trust has organized various programs for young generation to aware them about yoga and the mental health. The trust has also provided notebooks and study material to the needy people. Apart from the above, the trust has also organized the medical health checkup programs for general public for which certain documentary evidences were also submitted. 3. However, the Ld. CIT(E) was not satisfied with the submissions made by the assessee. He noted that the photographs and the details submitted shows the general gathering of people and does not show any sign board of the trust and further no credible evidence such as bills / vouchers were submitted in support of the expenses claimed. Therefore, the trust has failed to establish the genuineness of its activities. He further noted that the assessee was specifically given opportunity of being heard to offer its explanation with credible evidence. However, the assessee did not avail of the said opportunity nor submitted any credible evidence. He, therefore, held that the genuineness of the activities of the assessee and fulfillment of the conditions laid down in clause (i) to (v) of section Printed from counselvise.com 3 ITA No.916/PUN/2025 80G(5) of the Act are not fulfilled. He, therefore, rejected the application for grant of approval u/s 80G of the Act. 4. Aggrieved with such rejection of approval u/s 80G by Ld. CIT(E), the assessee is in appeal before the Tribunal. 5. The Ld. Counsel for the assessee submitted that various details were submitted before the Ld. CIT(E) substantiating the genuineness of the activities of the trust. However, he rejected the same on the ground that the photographs did not show any sign board of the trust. It is also his allegation that no credible evidence such as bills / vouchers were submitted in support of the same. He submitted that in the interest of justice, the assessee should be given an opportunity to submit further details before the CIT(E) to his satisfaction. It was accordingly requested that the matter may be restored to the file of the Ld. CIT(E) with a direction to consider the submissions made by the assessee and decide the issue afresh. 6. The Ld. DR on the other hand heavily relied on the order of the Ld. CIT(E) rejecting the application for grant of approval u/s 80G of the Act. 7. We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. We find the Printed from counselvise.com 4 ITA No.916/PUN/2025 Ld. CIT(E) while rejecting the application for grant of approval u/s 80G has observed as under: “7. The assessee also submitted some photographs and details of donations. Also the photographs submitted shows general gathering of people and does not show any sign-board of the trust. Also, no credible evidence such as bills/vouchers is submitted in support of the expenses made on activities claimed by the assessee despite a specific query. Thus, the trust failed to establish genuineness of activities. Further, the assessee was specifically given opportunity of being heard vide the notice dated 11/09/2024 to offer its explanation with credible evidences to show cause notice points no 2 (ii), 2(iii), 2(iv), 2(vi), 2(vii). However, the assessee has not availed the said opportunity nor submitted any credible evidences/clarifications for the said points. 8. Considering the above facts discussed in the show notice and discrepancies noticed, the undersigned is not satisfied about the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act. 9. In view of the above, the application filed by the assessee is hereby rejected and the provisional approval granted on 16/02/2022 under clause (iv) for first proviso to section 80G(5) of the Income Tax Act, 1961 is hereby cancelled.” 8. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate the genuineness of its activities and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act by filing further details to the satisfaction of Ld. CIT(E). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to give one final opportunity to the assessee to substantiate the genuineness of its activities by filing the relevant details and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. Printed from counselvise.com 5 ITA No.916/PUN/2025 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 1st September, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 1st September, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 20.08.2025 Sr. PS/PS 2 Draft placed before author 26.08.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "