SAMVEDNA FOUNDATION,SANGLI vs. COMMISSIONER OF INCOME-TAX, EXEMPTION, PUNE

The factual scenario is that the assessee was registered under Bombay Public Trust Act, 1950 on 16.4.2018. It made online application in Form 10A for approval u/s.12AA of the Act on 07- 02-2020. The ld. CIT(E) required the assessee to furnish certain details, inter alia, year-wise list of the donors with complete postal address and amended copy of the Trust deed/MoA having Irrevocability clause, Beneficiary clause and clause relating to Application of Funds only for the objects of the Trust/Institution.

The details as specifically narrated above were not furnished by the assessee despite reminders sent by ld. CIT(E). He, therefore, rejected the assessee’s application for grant of registration u/s. 12AA(1)(b)(ii) of the Act. Similar position obtains in respect of the application filed for registration u/s.80G(5)(vi). The ld. CIT(E) rejected the assessee’s application because of the denial of registration by him u/s 12AA of the Act. The assessee is aggrieved by the above orders.

The ld. AR submitted that the ld. CIT(E) gave opportunities to furnish the requisite details during the lockdown period. Because of the pandemic situation prevailing in the country, the ld. AR stated, that the assessee could not comply with the same. A prayer was made for affording another opportunity to the assessee for enabling it to furnish the requisite details as called for by the ld. CIT(E). No serious objection was taken by the ld. DR on this count.

Having heard both the sides through Virtual Court and gone through the relevant material on record, it is noticed that the questionnaire, demanding the above information, was issued by the ld. CIT(E) on 30-06-2020 and the further opportunity was given by fixing the matter for 21-09-2020. The assessee failed to submit these details because of the spread of corona virus and the consequential lock down. Considering the totality of the facts and circumstances prevailing in the instant case, we are of the considered opinion that there was a reasonable cause with the assessee in not filing necessary details before the ld. CIT(E). As such, we set-aside the impugned orders and remit the matter to the file of ld. CIT(E) for giving another reasonable opportunity to the assessee for complying with his requirements.

In the result, both the appeals are allowed for statistical purposes. Order pronounced in the Open Court on 10th March, 2021.