TARA RIPU DAMANPAL TRUST,KURUKSHETRA V. CIT EXEMPTION, CHANDIGARH

ITA 171/CHANDI/2025

AI Insights

The case involves Tara Ripu Damanpal Trust, which appealed against the decision of the CIT(E), Chandigarh, rejecting their application for registration under section 80G(5)(iii) of the Income Tax Act, 1961. The Trust argued that the rejection was illegal, arbitrary, and not justified as they had uploaded all relevant documents on the e-filing portal. The CIT(E) had initially found the documents insufficient to establish the genuineness of the Trust's activities. The Tribunal acknowledged the unfortunate circumstances faced by the Trust's representative, which led to partial compliance, and thus decided to remand the case for a thorough re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705898 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KUREEL
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Charitable institution

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 171 /Chd/ 2025 िनधाŊरण वषŊ / Assessment Year : 2025-26 Tara Ripu Damanpal Trust C/o K.R. Chhabra Advocate Shop No. 1,2,3,4 Sikh Mission Market, Kurukshetra, Haryana-136118 बनाम The CIT Exemption Chandigarh ˕ायी लेखा सं./PAN NO: AAYTS3230J अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राजˢ की ओर से/ Revenue by : Shri Rajat Kumar Kureel, CIT, DR सुनवाई की तारीख/Date of Hearing : 02/07/2025 उदघोषणा की तारीख/Date of Pronouncement : 04/07/2025 आदेश/Order PER LALIET KUMAR, J.M: This appeal is filed by the assessee against the order dated 17.12.2024 passed by the Ld. CIT(E), Chandigarh rejecting the application of the assessee for registration under section 80G(5)(iii) of the Income Tax Act, 1961. 2. In the present appeal Assessee has raised the following grounds: 1. Order passed by Lnd. CIT Exemption is illegal, arbitrary and bad in law. 2. On facts and in circumstances of case Lnd. CIT Exemption was not justified in rejecting the application for registration u/s 80G(5)(iii) when all relevant documents were uploaded on the e-filling portal of IT Department. 3. The assessee trust had filed an application for grant of registration under section 80G(5)(iii) on 26.06.2024. In response to the notices issued by the CIT(E), the assessee had initially failed to respond within the prescribed dates but subsequently submitted its reply on 09.12.2024. Along with the reply, the assessee furnished certain details and submissions in support of its claim for registration. 2 4. Against the order of the Ld CIT(E) the assessee preferred an appeal before the Tribunal. 5. During the course of hearing before us, the Ld. AR submitted that the earlier Chartered Accountant of the assessee was unable to file the complete submissions due to the sudden demise of his young son. This fact was duly brought to the notice of the CIT(E), and it was acknowledged by the authority. However, despite the peculiar circumstances and the partial compliance eventually made on 09.12.2024, the Ld. CIT(E) proceeded to reject the application without affording sufficient and final opportunity to the assessee to furnish the remaining documents and evidence. 5.1 It was further submitted that the assessee is a bona fide charitable trust carrying out activities in accordance with its objects and intends to comply fully with the statutory requirements, and should be granted a reasonable opportunity to demonstrate the same. 6. The Ld. DR relied upon the findings of the CIT(E) as recorded in the impugned order, stating that the documents filed were not found sufficient to establish the genuineness of the activities or the fulfilment of conditions under section 80G(5)(iii) of the Act. 7. We have heard both the parties and perused the material available on record. It is not in dispute that the assessee had eventually submitted its reply on 09.12.2024 in response to the show cause notice. The Ld. CIT(E) has noted that certain details were not adequately supported by documentary evidence. However, given the specific representation made by the assessee regarding the unfortunate circumstances faced by its authorised representative and the partial compliance already made, we are of the view that in the interest of justice and fair play, the assessee deserves one more opportunity to present its case. 7.1 Accordingly, the matter is remanded back to the file of the CIT(E), Chandigarh, with a direction to grant a final opportunity to the assessee to furnish all the requisite information and supporting documents in support of its claim for registration under section 80G(5)(iii) of the Act. The assessee is also 3 directed to cooperate fully in the proceedings and submit all the documents as required, without seeking further adjournments. 7.2 The CIT(E) shall thereafter pass a fresh speaking order after considering the submissions and documents filed by the assessee, in accordance with law. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 04/07/2025 Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "