EASTERN INDIA CULTURE ASSOCIATION,VADODARA vs. CIT (EXEMPTION),, AHMEDABAD

The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax (Exemptions), Ahmedabad (‘CIT(E)’ in short), dated 30.07.2018 under s. 80G(5) of the Income Tax Act, 1961 (the Act).

As per its grounds of appeal, the assessee in essence has challenged the action of the CIT (Exemptions) in rejecting the application for registration of the assessee Trust under section 80G(5) of the Act as wholly illegal, unlawful and against principles of natural justice.

The learned Departmental Representative for the Revenue, on the other hand, relied upon the order of the learned CIT (Exemptions) under challenge but however, submitted in the same vain and fairly so that the matter may go back to the file of CIT (Exemptions) for consideration of documentary evidences claimed to have been placed before the CIT (Exemptions) for appropriate decision in accordance with law.

We have carefully considered the rival submissions. Without going into the merits of the case, we notice at the outset that the [Eastern India Cultural Association vs. CIT-E) - 3 - assessee has strongly challenged the action of the CIT (Exemptions) on the grounds of transgression of natural justice. It is a case of the assessee that relevant documentary evidences were duly filed for the scrutiny of the CIT(Exemptions) to enable him to take an informed decision on the application for registration in Form No.10G under Rule 11AA of the Income Tax Rules together with the registration granted under s.12A of the Act. From the Paper Book filed before the Tribunal, we observe that the assessee has placed certain documents and explanations. The CIT (Exemptions) has however made reference to certain deficiencies on the part of assessee trust in its order passed under section 80G(5) of the Act. A perusal of the impugned order, however, gives us an impression that the contents of the aforesaid communications have not been fully taken into account while refusing to grant the registration sought. The assessee also appears to have provided inadequate assistance to the Registering Authority in explaining the genuineness of its activities etc.

Needless to say, the public authority functioning in quasi- judicial capacity is expected to confirm to the basic principles of natural justice. It appears that the CIT (Exemptions) has omitted to consider the submissions and documents warranting our interference. The non-consideration of evidences and explanations has caused prejudice to the interest of the assessee Trust. The assessee also appeared to have faulted in fully explaining the material placed. We thus consider it expedient to restore the issue back to the file of CIT (Exemptions) for fresh consideration of the application for registration in accordance with law, after giving reasonable opportunity to the assessee. It shall be open to CIT(Exemptions) to call for such documents, evidences as may be considered necessary to dispose of the petition for consideration of [Eastern India Cultural Association vs. CIT-E) - 4 - application for registration in accordance with law. Needless to say that the assessee shall co-operate earnestly in the de novo proceedings before the CIT(Exemptions) for the purposes of determination of the issue.

In the result, appeal of the assessee is allowed for statistical purposes.