DORI LAL VERMA DEVI TRUST,BAREILLY vs. COMMISSIONER OF INCOME TAX (E), LUCKNOW

The main argument of the ld. A.R. of the assessee before us was that the CIT (E) has not provided proper opportunity of being heard to the assessee and passed an ex-pare order, which is against the principles of natural justice; that most of the details/particulars, such as note on the activities of the institution and copies of the accounts of the Institution, were furnished by the assessee at the time of hearing for registration under section 12A of the Act and are already part of the record in the files of the Income tax Department; and that therefore, the rejection of the application of the assessee for grant of approval under section 80G(5) of the Act, on the basis of non-submission of copy of the registration certificate under section 12AA, etc., is not justified. The ld. Counsel for the assessee prayed that as such, the ld. CIT (Exemptions) may be directed to grant approval to the assessee society under section 80G(5) of the Act.

The ld. D.R., on the other hand, has placed strong reliance on the order of the ld. CIT (Exemptions), Lucknow.

Heard. We find that the ld. CIT (Exemptions) had rejected the application of the assessee for grant of approval under section 80G(5) of the Act, observing that the applicant has not provided any material to fulfill the requirements as enumerated in the provisions of Rule 11AA of the Income Tax Rules, thus, there is no material available on record so as to form any satisfaction regarding the genuineness of the activities carried out. The CIT (E) has passed the order, rejecting the Page 3 of 3 application of the assessee for approval under section 80G of the Act, in the absence of the assessee. In this view of the matter, we feel that one more opportunity should be given to the assessee to explain its case before the ld. CIT (Exemptions). We are of the view, from the facts of the case, that the assessee has not been given proper and sufficient opportunity before disposing of the application for approval, by the ld. CIT (Exemptions). We, therefore, in the interest of justice, set aside the order of the ld. CIT (Exemptions) and restore the matter to his file with the direction to consider and decide afresh, the application of the assessee for approval under section 80G of the Act, preferably within two months from the date of receipt of this order, on affording reasonable opportunity of hearing to the assessee. The assessee is also directed to be present on the date of hearing and provide the material / clarification as asked for by the ld. CIT (Exemptions).

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on 02/08/2021.