MADHUSUMAN FOUNDATION,MUMBAI vs. CIT EXEMPTION, PUNE

The appellant craves to leave, add, alter, amend and/or delete any of the above referred grounds of appeal at the time of the hearing of the appeal.”

The assesse filed application in Form 10AB under clause (iii) of Sec. 12A(1)(ac) of the Act on 30.03.2022. The ld. CIT(Exemption) with a view to verify the genuineness of activities of the assessee issued a notice through ITBA Portal on 25.07.2022 requesting the assesse to upload certain other information/clarification viz. date of commencement activities, date of expiry of provisional certificate, date of any other law applicable for achievements of the objects and the proof of compliance of the said law, proof of identity of name trustee/directors, year wise list of donation received, note on activities carried out etc. The assessee was requested to submit his compliance by 09.08.2022. However, the assessee has failed to make compliance by the due date before the ld. CIT(Exemption). Consequently, the ld. CIT(Exemption) has rejected the application of the assessee.

Heard the ld. D.R and perused the material on record. As per the amended provision of Sec. 12AB of the Act the assessee has uploaded Form 10AB on 31.03.2022. The ld. CIT (Exemption) has rejected the application in Form 10AB for failing to compliance with the provision of Sec. 12AB(1)(b)(i) of the Act as the assessee has not submitted supporting document/evidence as mentioned in the notice issued by ld. CIT (Exemption). The assessee submitted that while filing Form 10AB the basic required document and information was submitted, however, the other document required by the ld. CIT(Exemption) could not be submitted as e-submission on income tax portal was closed by the assessing authority on 10.09.2022, therefore, it was beyond the control of assessee to submit any such documents.

On the similar reason as discussed supra while adjudicating the appeal of the assessee vide ITA No. 1058/Mum/2022 the ld. CIT(Exemption) has also rejected the application filed by the assessee in Form 10AB under clause (iii) of first proviso to sub-section (5) of Sec.80G of the Income Tax Act, 1961 for not making compliance to the notice issued by the ld. CIT (Exemption) for filing of supporting documents. In this case also the assesse could not make compliance for the similar reason as mentioned in the ITA No. 1058/Mum/2023 before the ld. CIT(Exemption). Therefore, applying the finding of ITA No.1058/Mum/2023 mutatis mutandis this case is also restored to the file of the ld. CIT (Exemption) for deciding afresh on merit after affording adequate opportunity to the assessee. The assessee is also directed to make required compliance before ld. CIT(A) without any failure, therefore, the appeal of the assessee is allowed for statistical purposes.

In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 31.07.2023 (Amit Shukla) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 31.07.2023 Rohit: PS