ITAT Bangalore Restores Section 80G Approval Application for Fresh Evaluation

Background of the Dispute

The case concerns Section 80G approval sought by a charitable trust, Brahmashree Mittur Purohitha Thimmayya Bhatta Samprathishtana R, and the subsequent rejection of that approval by the Commissioner of Income Tax (Exemptions) [CIT(E)], Bangalore.

The assessee, a registered charitable trust, had submitted an application seeking approval under Section 80G of the Income Tax Act 1961 on 25/01/2025. Such approval, once granted, enables donors to the trust to claim deduction in respect of donations made, thereby enhancing the trust’s ability to mobilize funds.

The CIT(E), however, declined this application through an order dated 29/07/2025, primarily on the basis that:

  • The assessee allegedly did not comply with notices issued by the department, and
  • The necessary documents to demonstrate the genuineness of charitable activities were stated to be not furnished.

This rejection order was then challenged by the assessee before the ITAT Bangalore.

Core Issue Before the Tribunal

The central question before the Tribunal was whether the rejection of the Section 80G approval application—on the ground of non-response and non-furnishing of documents—was sustainable in law, when in fact, documents had been uploaded on the departmental portal before the rejection order was passed.

In essence, the dispute turned on:

  • The factual correctness of the CIT(E)’s observation that there was no response to notices, and
  • Whether the order could be treated as a proper, reasoned order when relevant material filed by the assessee existed on record but was not considered.

Chronology of Notices and Compliance

Application for Section 80G

  • The assessee filed an application for approval under Section 80G on 25/01/2025.

Notices Issued by CIT(E)

The order of the CIT(E) referred specifically to two notices:

  1. Notice dated 03/07/2025, requiring the assessee to submit details on or before 10/07/2025.
  2. Notice dated **17/07/2025`, also forming part of the basis for rejection.

According to the CIT(E), the assessee did not respond to these communications and failed to file requisite documents to establish the genuineness of its charitable activities.

Actual Filing by the Assessee

Contrary to the observations in the rejection order, the Tribunal examined the material available in the case records, including acknowledgements downloaded from the income tax department’s portal. These records revealed that:

  • The assessee had uploaded several documents on the departmental portal on 23/07/2025.
  • These documents were therefore available in the system before the CIT(E) passed the rejection order on 29/07/2025.

Although the details were not filed within the original due date of 10/07/2025, they had certainly been furnished before the order was finalized.

Proceedings Before the ITAT

At the time of hearing before the ITAT Bangalore, no representative appeared on behalf of the assessee. The Tribunal, therefore, proceeded to adjudicate the matter on merits after hearing the Ld. CIT-DR and examining the record.

The Ld. CIT-DR defended the rejection by contending that: