2020 (1) TMI 1581 - AT - Income Tax

Exemption u/s.80G - Denial of exemption as relevant documentary evidences provided - genuineness of charitable activities claimed to be carried out by the assessee Trust not proved - AR contended that once approval u/s.80G of the Act has been granted and it is not being withdrawn till date, there is no question of rejection of application u/s.80G - HELD THAT - We find that vide order dated 28.03.2019, the Ld. CIT(Exemptions) had rejected the approval of exemption u/s.80G of the Act to the assessee for the reason that relevant documentary evidences were not filed stating the genuineness of charitable activities conducted by the assessee. However, we also find that vide order dated 30.03.2017, the assessee Trust has already got approval u/s.80G(5)(vi) of the Act from the Ld. CIT(Exemptions) which is still continuing. This fact has not been denied by the Ld. DR nor any material contradicting to these facts were placed on record by the Revenue Authorities. Therefore, we are of the considered view, once approval of exemption u/s.80G(5)(vi) of the Act has been granted by the Department to the assessee Trust, it has not been withdrawn and it is still continuing. Therefore, the order dated 28.03.2019 is redundant in law as well as in facts. Appeal of assessee allowed.

Summary

Issues:
- Exemption u/s.80G of the Income Tax Act, 1961

Analysis:
The appeal pertains to the denial of exemption u/s.80G of the Income Tax Act, 1961 by the Ld.CIT (Exemptions), Pune. The only grievance raised by the assessee was regarding the issue of exemption u/s.80G of the Act. The assessee had filed an application for approval in Form 10G for exemption u/s.80G, which was denied by the Ld. CIT(Exemptions) citing lack of documentary evidence to support the genuineness of charitable activities. However, the assessee had already obtained approval u/s.80G(5)(vi) on 30.03.2017, which was still valid at the time of the denial. The Ld. AR contended that since the approval was not withdrawn, the subsequent denial of exemption was unwarranted.

Upon reviewing the case records and arguments presented, the Tribunal observed that the approval of exemption u/s.80G(5)(vi) granted to the assessee Trust on 30.03.2017 was still in effect and had not been withdrawn by the Department. The Tribunal noted that the Revenue Authorities did not provide any contradictory evidence to dispute the continuation of the approval. Consequently, the Tribunal concluded that the denial of exemption on 28.03.2019 was legally and factually redundant. Therefore, the Tribunal allowed the appeal of the assessee, ruling in favor of the assessee Trust.

In light of the above analysis, the Tribunal held that once approval for exemption u/s.80G(5)(vi) had been granted and not withdrawn, the subsequent denial of exemption was unjustified. The Tribunal emphasized the importance of maintaining consistency in administrative decisions and upheld the validity of the initial approval, thereby ruling in favor of the assessee Trust.