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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD
Before: SHRI R.K. PANDA & SHRI LALIET KUMAR
सुिवधई की तधरीख/Date of hearing: 28.11.2023 घोर्णध की तधरीख/Pronouncement on: 28.11.2023 O R D E R PER LALIET KUMAR, J.M.
This appeal is filed by the assessee feeling aggrieved by the order of Commissioner of Income Tax (Exemption), Hyderabad dt.22.08.2023 invoking proceedings under section 80G of the Income Tax Act, 1961 (in short, “the Act”).
The grounds raised
by the assessee read as under : “1). The order passed by The Honorable Commissioner of Income Tax (Exemption), Hyderabad in not granting the registration to the trust U/s 80G (5) of the Income- Tax Act, 1961, is unsustainable both in law and facts.
2. The Honorable CIT (Exemption), Hyderabad is unjustified in rejecting the application for Registration u/s. 80G(5) of the Income —Tax act, 1961. The Honorable CIT (Exemption) has failed to appreciate the fact that the application for registration under section 12A and registration under section 80G(5) were applied on the same date i.e., 22.022023. Application for Registration u/s 12A(1)(ac)(iii) is approved, whereas application for registration under 80G(5) is rejected. This is contrary to the facts of the case. 3, The Honorable CIT (Exemption), Hyderabad is unjustified in rejecting the application for registration u/s. 800(5) on the basis that the appellant has not submitted the response to the show cause notice served on 08.08.2023, to the e-mail address - i.e., contoct@houseofenlightenmentin.in. In fact, the said e-mail has not reached the appellant. it is pertinent to note that spelling in the said e-mail address was mentioned wrongly i.e., the word was wrongly mentioned as "contoct". Due to non-receipt of show cause notice, the appellant was unable to submit the response to the same. Further, the appellant also did not receive hard copies of any of the notices during the Proceedings u/s. 80G(5) as claimed by the Honorable CIT (Exemption), Hyderabad in the order. This is against the principles of natural Justice. Hence, the order rejecting the registration u/s. 80G (5) is bad in law and liable to be quashed. The order of the learned CIT (A) is erroneous both on facts and in law.”
The brief facts of the case are that assessee filed an e- application in Form No.10AB seeking registration u/s 80G(5) of the Income-Tax act, 1961. Thereafter, notices dated 31-05-2023 28-06-2023 & 27-07-2023 were issued in respect of proceedings u/s 80G(5)(iii) to the address mentioned in the Form 10AB, to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In view of the CBDT’s circular No.8/2022 dt.31.03.2022, the last date for filing of Form
3 No.10AB was 30-09-2022. Keeping in view of the above, the ld.CIT(E) opined that the application filed in Form 10AB for seeking registration u/s 80G(5) by the assessee cannot be considered and hence, a show-cause notice dt 08-08-2023 was issued to the assessee. However, as there was no compliance from the assessee by providing any information or documentary evidence, the ld.CIT(E), rejected the application filed by the assessee in Form No.10AB as non-maintainable.
Feeling aggrieved with the order of CIT(Exemptions) passed u/s 80G(5), assessee preferred appeal before us.
Before us, ld. AR has pleaded that the e-mail id on which show cause notice was sent by CIT(Exemptions) was not the correct e-mail address and hence, the assessee has not received any show cause notice and due to which the assessee was unable to submit the reply as called for.
Per contra, ld. DR submitted that on earlier occasion, notices were sent to the correct e-mail address and at that time also, the assessee has failed to provide necessary information / documentary evidence as called for. Ld. DR further submitted that the order of ld.CIT(E) is in accordance with law.
We have heard the rival submissions and perused the material on record. In view of the rival contentions of the parties, we are of the opinion that it would be just and proper if assessee was given one more opportunity to submit its reply for the said show cause notice. Hence, we hereby direct the assessee to appear before the ld.CIT(E) on 04.01.2024 or any other date as may be fixed by ld.CIT(E) to substantiate its case by providing necessary information / documentary evidence as called for by the ld.CIT(E). Accordingly, the appeal of the assessee is remanded
4 back to the file of ld.CIT(E) with a direction to pass a fresh speaking order after giving due opportunity of hearing to the assessee, in accordance with law. The assessee shall be at liberty to file documents, if any, as required for proving its case and the ld.CIT(E) shall consider such evidences, if any, filed by the assessee. Needless to say the ld.CIT(E) shall examine those documents / evidence filed by the assessee and also the other documents available on record. Accordingly, the appeal of assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.