ITAT Allows Fresh Opportunity to Trust Seeking Income Tax Exemption

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) just handed down an important decision in a group of appeals from several charitable trusts and societies. These organisations, like Bab Sarsai Nath Books Bank Welfare Trust, Bhai Kanahaiya Manav Sewa Trust, Animals & Birds Welfare Society, and others from Haryana, went to ITAT after the Commissioner of Income Tax (Exemptions) denied their requests for registration under Section 12A and approval under Section 80G of the Income Tax Act, 1961.

The reason for rejection is the Commissioner said these trusts didn’t submit enough documents or comply with requirements, even after being notified multiple times. The Revenue argued that because the applicants requested several adjournments, they couldn’t really verify whether the charitable activities were genuine.

When the appeal reached ITAT, the trusts’ counsel pushed back. They said replies and adjournment requests were filed as expected. Turns out, some delays happened because their legal team was busy with audits and tax returns. To back this up, the trust brought documentary evidence, providing they had responded to the notice from CIT(E).

After looking at everything, ITAT decided that fairness demanded these trust get another chance. So, the Tribunal canceled the earlier rejection orders and sent the cases back to CIT(E) with instructions to properly hear the trusts and give them enough time. In the end, ITAT allowed the appeals but just for statistical purposes.