FUEL FOUNDATION SOCIETY,DEHRADUN vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW

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ITA 15/DDN/2020Status: DisposedITAT Dehradun23 November 2020AY 2019-205 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee claimed to have submitted the documents, but they were not considered by the CIT. Therefore, the matter was remanded back to the CIT for a fresh decision after allowing the assessee to furnish all relevant documents and providing a reasonable opportunity of hearing.

What were the facts?

The assessee, Fuel Foundation Society, applied for registration under Section 12AA of the Income Tax Act. The CIT (Exemption) rejected the application, stating that the assessee failed to provide required documents and replies.

What were the issues?

Whether the CIT erred in rejecting the registration application without considering the documents submitted by the assessee and whether the principles of natural justice were followed.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN CIRCUIT BENCH: DEHRADUN

Before: SHRI R. K. PANDA & MS SUCHITRA KAMBLE

Hearing: 17.11.2020Pronounced: 23.11.2020

PER SUCHITRA KAMBLE, JM

1.

This appeal is filed by the assessee against the order dated 13/2/2020 passed by CIT(Exemption) u/s 12AA (1)(b) (ii) of the Income Tax Act.

2. The grounds of appeal are as under:-

“That the Ld. CIT (Exemptions) has erred in law and on facts in I. rejecting the application for grant of registration under section 12AA of the Income-tax Act, 1961 (‘the Act’).

II. That the Ld. CIT (Exemptions) erred in law and on facts in passing an order, without appreciating the submission dated

04.02.2020 filed online on the portal of the Ld. CIT (Exemptions).

III. That the impugned order passed by Ld. CIT (Exemptions), dated 13.02.2020 u/s 12AA of the Act is contrary to the principles of natural justice and equity and deserves to be quashed.

That the Ld. CIT (Exemptions) while rejecting the application for IV. grant of registration sought by the Appellant vide order dated 13.02.2020 has mis-directed itself in not considering the facts on record provided through the submission dated 04.02.2020.

That the Ld. CIT (Exemptions) while passing the impugned order V. dated 13.02.2020 has failed to appreciate all the information so asked for by the office of the Ld. CIT (Exemptions) vide Appellant’s submission dated 04.02.2020.

In the Order, the Ld. CIT(Exemptions), has made a finding that the assessee has not filed the required documents as mentioned in its order.

The assessee has made complete compliance and same is evident from its response filed online on 04.02.2020.”

3.

The assessee filed online application for registration u/s 12A of the Income Tax Act, 1961 on 16/8/2019. Accordingly, notice was issued thereby fixing date of hearing on 31/1/2020, but the assessee was unable to submit it response on the date of hearing and took an adjournment in the mater and filed online adjournment application on 31/1/2020. The matter was adjourned and fixed for hearing on 4/2/2020. On the date of hearing i.e. 4/2/2020, the assessee uploaded the response/contention before the CIT (Exemptions). The assessee submitted that all the queries as asked for in questionnaire dated 21/4/2020 was answered. The CIT (Exemption) passed an order dated 13/2/2020 thereby rejecting the registration sought u/s 12A (1) of the Act.

4. Being aggrieved by the order u/s 12AA(1)(B) (ii) of the Act, the present appeal is filed by the assessee before us.

5.

The Ld. AR submitted that the assessee filed all the relevant material before CIT (Exemption) but the CIT(Exemption) has not taken cognizance of the same and rejected the registration on that basis alone.

6.

The Ld. DR relied upon the order of the CIT (Exemption).

7.

We have heard both the parties and perused the material available on record. From the perusal of records and order of the CIT (Exemption), it can be seen that the CIT(Exemption) rejected the application for registration u/s 12A(1) by observing that the assessee did not file following documents.

“1. Any evidence/documents regarding proof of its activities for attainment of its objection

2.

Original Trust/Deed/memorandum of association for verification.

3. Details of donation received.

4.

The applicant did not file any reply w.r.t. Point No.9,10,11,22 & 23.

As per the contentions of the Ld. AR, the said documents were filed, but not taken on record by the CIT(Exemptions). Therefore, it will be appropriate to remand back this issue to the file of the CIT (Exemptions) with a direction to the assessee to furnish all the relevant documents already filed and decide the issue as per fact and law. Needless to say, the CIT (Exemption) should give reasonable opportunity of hearing to the assessee by following principles of natural justice. Thus, the appeal of the assessee is partly allowed for statistical purpose.

8.

In result, appeal of the assesses is partly allowed for statistical purpose. Order pronounced in the Open Court on this 23rd Day of November, 2020.

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