KIRITSHREE FOUNDATION,MAHARASHTRA vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI, MAHARASHTRA

Both the appeals filed by the assessee are directed against the separate orders passed by the learned CIT(Exemption), Mumbai rejecting the applications filed by the assessee seeking registration under section 12AB of the Act and approval under section 80G of the Act.

We heard the parties and perused the record. We noticed that the assessee had filed two applications in Form No. 10AB seeking registration under section 12AB and approval under section 80G of the Act. On examination of the applications, learned CIT(Exemption) took the view that these applications are not complete and all the documents are required to be furnished were not furnished. Accordingly learned CIT(Exemption), vide his letter dated 18.4.2023, asked the assessee to furnish all the details. The assessee responded to the above said notice and filed its submission on 28.4.2023. Still not satisfied with the documents furnished, learned CIT(Exemption) issued another notice dated 21.5.2023 asking the assessee to furnish further details to ascertain the genuineness of the activities carried on by the assessee. The assessee responded to the second notice also by making its submissions dated 24.5.2023. Still, the learned CIT(Exemption) took the view that the assessee has not furnished complete details. Since the limitation period for granting the registration/approval was ending on 31.5.2023, learned CIT(Exemption) rejected both the applications filed by the assessee. Aggrieved, the assessee has filed these appeals before the Tribunal.

Having heard the rival submissions, we notice that the Ld CIT(E) was constrained to reject the applications of the assessee mainly for the reason that the limitation period for processing the applications is about to expire. We notice that the assessee has responded to the notices issued by Ld CIT(E) and it is not the case that the assessee was lethargic or non- responsive. Under these set of facts, we are of the view that the assessee should not be made to suffer on the reasoning that the limitation period for processing the applications of the assessee is about to expire. Accordingly, we are of the view that, in the interest of natural justice, the assessee should be provided with one more opportunity to furnish relevant details to the satisfaction of learned CIT(Exemption).

Accordingly, we set aside both the orders passed by learned CIT(Exemption) and restore all the issues to his file with the direction to allow proper opportunity to the assessee to furnish details called for and accordingly process the applications filed by the assessee seeking registration under section 12AB and approval under section 80G of the Act in accordance with law.

In the result, both the appeals filed by the assessee are treated as allowed for statistical purposes.