NATIONAL SOLAR ENERGY FEDERATION OF INDIA,NEW DELHI vs. CIT (EXEMPTION), NEW DELHI

3. The trust has consistently engaged in charitable activities aligned with its objectives and has submitted its utilization details for funds received. The genuineness of the trust's activities has been established through earlier submissions. The rejection of Form 10AB application along with the cancellation of provisional approval under Section 80G(5), is invalid as it is based on procedural lapses and does not consider the merits of the case.

4. In light of the above facts and grounds, the appellant prays :

1. 1. That the rejection order dated 12.11.2024 be set aside.

2. That the provisional registration under Section 80G(5)(iv) for Assessment Years 2023-24 to 2015-26 be restored.

3. That the application in Form 10AB be considered for approval under Section 80G(5)(iii). Judicial precedents support the view that technical or procedural lapses should not outweigh the substantive merits of a case. The rejection order disregards this principle. Accordingly, since the delay in responding to the notice was due to unavoidable circumstances. The appellant requests condonation of the delay and reconsideration of its application based on the merits. Since the provisional registration granted for AY 2023-24 till A Y 2015-26 has been cancelled by the officer, we request that hearing may be granted on an urgent basis.”

2. At the time of hearing, ld. AR of the assessee brought to our notice rejection of assessee’s application under section 80G of the Income-tax Act, 1961 (for short ‘the Act’). He also brought to our notice order passed u/s 80G of the Act wherein ld. CIT (E) at para 3 of the order mentioned that several opportunities were granted to the assessee and there was no compliance on the part of the assessee, it has not filed proper submissions as the details were called vide notice dated 18.11.2024 and 06.12.2024. In this regard, he submitted that assessee has duly responded to the notices issued dated 04.07.2024, 13.09.2024 and 18.11.2024 and furnished the required information as called for. He submitted that the last notice which was referred by the ld. CIT (E) was not complied, it is not intentional due to certain circumstances. This cannot be the reason for ld. CIT (E) to reject the application and he submitted that assessee has already filed substantial information required for granting registration u/s 80G of the Act. He also submitted that assessee has obtained registration u/s 12A of the Act and complied to the conditions for registration of the same, the Trust is consistently engaged in charitable activities aligned with its objectives and in this regard, assessee has already submitted the details of utilization of funds for the charitable purpose.

3. On the other hand, ld. DR of the Revenue objected to the submissions of the assessee and submitted that ld. CIT (E) has given two notices specifically to collect the relevant information for grant of registration. Since the assessee has failed to comply to those notices, he supported the rejection of registration u/s 80G of the Act.

4. Considered the rival submissions and material placed on record. We observe that assessee has complied to various notices issued previously and due to certain unavoidable circumstances, assessee could not submit or comply to the recent notices. Ld. CIT (E) has rejected application due to non- availability of information from the assessee. For the sake of complete justice, we are inclined to remit this issue back to the file of ld. CIT (E) to consider the facts in this case and collect the relevant information from the assessee and grant the registration as per law, after giving proper opportunity of being heard to the assessee.