BHAGWATI MOTIANI EDUCATIONAL SOCIETY,AJMER vs. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR

Briefly the facts of the case are that the assessee-society is registered with the Registrar of society, Ajmer and also registered U/s 12A(a) vide CIT, Ajmer order dated 25.04.2006. It moved an application 2 Bhagwati Motiani Educational Society vs. CIT before the ld. CIT(E) on 25.06.2018 seeking approval U/s 10(23C)(vi) & (via) of the Act. During the course of proceedings vide letter dated 16.05.2019 and thereafter vide order sheet entry dated 17.06.2019, the assessee was asked to filed certain information and related documentation relating to salary expenditure, bus receipts and unsecured loans. The ld. CIT(E) has returned a finding that the assessee society has failed to provide the necessary details, therefore, it is not possible to verify the genuineness of the activities carried out by the assessee society accordingly, the application filed by the assessee was rejected.

During the course of hearing, the ld. AR submitted that the assessee has submitted requisite details which were called for by the ld CIT(E) and which were communicated to him through e-mail dated 17.06.2019 as well as personally discussed in his office for verification. However, the ld. CIT(E) has without examination of the said facts has decided the matter against the assessee. It was accordingly submitted that the matter may be set aside to the file of the ld. CIT(E) to examine the details so sought by him and the decide the matter a fresh.

Per contra, the ld. CIT/DR has submitted that in the absence of the necessary details filed by the assessee, it is difficult to verify the genuineness of the activities carried out by the assessee-society which is very much germane to the issue before granting exemption 10(23C)(vi) of the Act. At the same time, the ld. DR fairly submitted that where the Bench so decide to set aside the matter to the file of the ld. CIT(E), the Revenue has no objection to the same. 3 Bhagwati Motiani Educational Society vs. CIT

We have heard the rival contentions and perused the material available on record. We find that the ld. CIT(E) has called for certain details and documentation in order to verify the genuineness of the assessee society. It is the assessee’s contention that said details were submitted through an email communication which has not been considered by the ld CIT(E). In the interest of justice and fair play, we set-aside the matter to the file of the ld CIT(E) to consider the same and decide the matter a fresh after providing reasonable opportunity to the assessee.