FRIENDS OF RURAL DEVELOPMENT CHARITABLE SOCIETY,DEHRADUN vs. COMMISSIONER OF INCOME TAX (E), LUCKNOW

This is an appeal filed by the assessee against the order dated 13/08/2019 passed by Id. CIT (Exemption) rejecting the registration u/s 12AA of the IT. Act.

The facts of the case, in brief, are that the assessee society applied for registration u/s 12A(1) of the Act with CIT (Exemption) vide application dated 25.02.2019. The Id. CIT(Exemption) issued a letter dated 26/07/2019 to the assessee calling for specific queries regarding the application for registration u/s 12A for compliance on 07.08.2019. However, none the application of the assessee for registration u/s 12A(a) of the Act on the ground that assessee has not produced books of account, original trust deed and other relevant documents required for verification. 3. We have heard the rival parties and have perused the material available on record.. From the order of Id. CIT (Exemption), it is apparent that the Id. CIT (Exemption) had issued only one letter dated 26/07/2019 calling for certain queries, documents/clarifications. The assessee could not file books of account, original trust deed and other documents and the CIT (Exemption) passed the order and rejected the application of the assessee for registration u/s 12A of the Act. In these facts, we feel that one more opportunity should be given to the assessee to explain its case before the Id. CIT (Exemption). 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 of registration by the Id. CIT (Exemption). We, therefore, in the interest of justice, set aside the order of the Id. CIT (Exemption) and restore the matter to his file with the direction to consider the application of the assessee for registration u/s 12A afresh after giving proper and sufficient opportunity of being heard 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 Id. CIT (Exemption). 4. In the result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 16/12/2020 in accordance with Rule 34(4) of I.T.AT. Rules.) Sd/- Sd/- (A.D. Jain) (T.S. Kapoor) Vice President Accountant Member Aks – Dtd. 16/12/2020 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File