ITAT Restores 80G Approval Application; Remands Case for Fresh Adjudication

The present appeal has been filed by Universe Art Foundation (Appellant) against the CIT(E) (Respondent) in the Income Tax Appellate Tribunal (ITAT) Bench “B”, Bangalore, before Shri Prashant Maharishi (Vice-President) and Shri Keshav Dubey (Judicial Member). The case was decided on December 12, 2025. The appeal is filed by the assessee against the order dated June 21, 2025, passed by the CIT(E).

The Universe Art Foundation (assessee) is a trust established on September 13, 2013, through registration no. 590/13-14. However, CIT(E) observed that the assessee had made an application in Form 10AB on December 28, 2024, for granting approval under section 80G(5) of the act, after which the assessee was granted an opportunity to be heard on May 28, 2025, through notice. But the assessee did not respond to the said notice.

Thereafter, a show-cause notice dated June 5, 2025, was also issued as a last opportunity to present the case on June 12, 2025. However, CIT(E) noted that the assessee had not reported the details completely.

The assessee failed to submit important required documents. It did not file its audit reports for the financial years 2022-23 and 2023-24, did not provide proper proof showing how money was spent for the trust’s objectives, did not give details and evidence of fees received from cultural event participation, and also did not submit bank statements for the period from April 1, 2022 to March 31, 2024. Due to these missing documents, the application filed in Form No. 10AB on November 11, 2024, for approval under Section 80G was rejected, and the earlier approval granted to the assessee was also cancelled.

The assessee further approached the ITAT. During the hearing, AR added that it was not a case of total non-compliance, as Form 10A, along with the requisite supporting documents, had already been filed and the assessee had also appeared before the CIT (E) on June 12, 2025, to submit the records and clarifications sought. The Department supported the lower authority’s order but fairly agreed that the matter could be remanded since complete details were not furnished. After examining the record, the Tribunal observed that the sole reason for the denial of approval under section 80G(5) was non-submission of certain documents, such as audit reports for AYs 2022-23 and 2023-24, proof of expenditure, receipts from cultural events and relevant bank statements.

As a result, the Tribunal sent the matter back to the CIT(E) for fresh consideration in accordance with law, with a direction to grant a reasonable opportunity of hearing to the assessee. The Tribunal also directed the assessee to submit all required documents as a last chance. Accordingly, the appeal was partly allowed for statistical purposes.