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Income Tax Appellate Tribunal, HYDERABAD BENCH ‘A, HYDERABAD
Before: SHRI SATBEER SINGH GODARA & SHRI LAXMI PRASAD SAHU
Iqbal Fatima Educational Vs. Commissioner of and Charitable Trust, Income-tax Hyderabad. (Exemptions), Hyderabad. PAN – AABTI 5251J (Appellants) (Respondent) Assessee by: Shri P.C. Yadav Revenue by: Shri R. dipak Date of hearing: 27/04/2021 Date of pronouncement: 29/04/2021 O R D E R
PER L.P. Sahu, AM:
This appeal filed by the assessee is directed against the CIT(Exemptions), Hyderabad’s order, dated 26/09/2019 involving proceedings u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 ; in short “the Act”, on the following grounds of appeal: “1. The impugned order dated 26.9.2019 is passed much against the weight of evidence on record and as such, liable to be set aside.
2. The learned Commissioner of Income-tax (Exemption) Rs. erred in holding that the appellant failed to furnish the information called for vide letter dt.14.8.2019. The learned Commissioner of Income tax(Exemption) failed to appreciate that the 2 Iqbal Fatima Educational and Charitable Trust, Hyd. appellant vide reply dated 6.9.2019 furnished the information sought for and as such, the . impugned order dt.26:9.2019 may be set aside and a direction be issued to grant registration u/s 12AA of the I.T. Act,1961 to the Appellant/Trust.
3. The learned Commissioner of Income tax ( exemption) failed to appreciate the fact that appellant was in a nascent phase had a very dismal receipt of donations and the entire collections were spent in providing financial aid to the deserving students.
4. The learned Commissioner of Income tax (exemption) did not look in to the assessment record without evaluating the material produced in the course of hearing, deduced that genuineness is clouded with doubt. The finding is perverse and much against the weight of evidence and is based on surmises and conjectures.
5. The impugned order is bad in law in as much as it fails to stand the test of legality and requirements of law as such it is liable to be vacated.”
Briefly the facts of the case are that assessee filed application in Form No. 10A seeking registration u/s 12A of the Act on 30/03/2019. The CIT(E) issued a notice dated 14/08/2019 to appear and produce its original memorandum of association/trust deed for verification and furnish a detailed reply on specific points on or before 06/09/2019.
2.1 The CIT(E) noted that on examination of the Income & Expenditure account for the period ending 31/03/2018, the assessee had spent Rs. 25,000/- in 3 Iqbal Fatima Educational and Charitable Trust, Hyd. cash to various students. He, therefore, asked the assessee vide his letter dated 14/08/2019 to furnish the details of activities undertaken along with date, location etc. and to justify how the activities are in accordance with the objects of the institution, the assessee failed to furnish the same. Therefore, the CIT(E) observed that in the absence of the details of beneficiaries and evidence, the activities of the assessee could not be verified and hence, doubted the genuineness of the trust. Thus, he rejected the application of the assessee filed in Form No.10A.
Aggrieved, the assessee is in appeal before the ITAT.
The contention of the assessee in the grounds of appeal is that it had furnished the information sought for vide reply dated 06/09/2019, but the same was ignored by the CIT(E) and rejected its application filed in form 10A seeking registration u/s 12A. He, therefore, requested the Bench to remit the matter back to the file of CIT(E) to file the required information once again before him.
The ld. DR on the other hand relied on the order of CIT(E).
4 Iqbal Fatima Educational and Charitable Trust, Hyd.
We have considered the rival submissions and perused the material on record. As requested by the ld. AR of the assessee, in the interest of justice, we remit the matter back to the file of the CIT(E) with a direction to examine the material that are required for granting registration u/s 12A, which will be put-forth by the assessee before him and decide the issue in accordance with law as well as on merits. The assessee is directed to furnish the material evidence as required by the CIT(E) in support of application filed in Form 10A for grant of registration u/s 12A of the Act. Accordingly, the grounds raised by the assessee are treated as allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Pronounced in the open court on 29th April, 2021.