SHALIMAR BAGH SAMAJ SEVA SAMITI,NEW DELHI vs. CIT(EXEMPTION) DELHI, DELHI

The order passed by the learned CIT(Exemption) is bad in law and on facts, and liable to be quashed as the same has been passed without providing a proper and adequate opportunity of being heard. 2. That the Learned CIT(Exemption) erred in rejecting the application under section 12A(1)(ac)(ii) without appreciating that the objects of the appellant society are purely charitable in nature. 3. That the Learned CIT(Exemption) wrongly rejected the application on account of alleged non-submission of documents without considering that such non-compliance was neither intentional nor deliberate. 4. That the Learned CIT(Exemption) failed to provide adequate and effective opportunity of being heard thereby violating the principles of natural justice. 5. That the Learned CIT(Exemption) erred in not conducting proper inquiry as required under section 12AB to satisfy himself about the genuineness of activities of the appellant. 6. That the observation of the learned Commissioner of Income Tax (Exemption) treating by-sales income as commercial in nature as arbitrary without proper verification and no conclusive findings has been recorded to establish that the activities of the appellant are non - charitable. 2

That the learned Commissioner of Income Tax (Exemption) ought to have granted a further reasonable opportunity to the appellant to furnish requisite details and explanation before passing the impugned order. 8. The appellant craves leave to add alter, very omit substitute and amend the above grounds of appeal at any time of hearing of appeal so as to enable your good self to decide this appeal according to law. 3. The Ld. AR submitted that the Ld. CIT(E) rejected the application for registration under section 12A(1)(ac)(ii) of the Act. The Ld. CIT(E) rejected the registration application by observing as under :- The applicant did not comply with the notice. The applicant has not filed the details/ information required by the notice referred above. Further these documents/details were also not attached with Form No.10AB, therefore the necessary verification in support of genuineness of the activities, charitable objects, commencement of the activities could not be completed. 3. In view of this fact, the application filed in form 10AB for grant for registration u/s 12A(1)(ac)(ii) of the income tax Act, 1961 is rejected due to non-submission of documents for verification of charitable nature of objects as well as genuineness of activities The applicant failed to file the details. Hence, the applicant was afforded another opportunity vide notice dated 02-12- 2024, fixing the case for compliance on 06-12-2024. The applicant has again has failed to file the details as discussed. 3. In view of the above as discussed in para-3, the applicant failed to satisfy the genuineness of the activities, the application filed in Form 10AB for grant of approval u/s 80G(5)(iii) is hereby rejected. 5. Since, the application filed in Form 10AB for grant of approval u/s 80G(5)(iii) is rejected, the provisional approval granted vide order 23-09-2021 having unique Approval No. AACTN7434MF20218 issued for the period from 23-09-2021 to A.Y. 2024-25 is also cancelled. 4. The Ld. DR has submitted that the Ld. AR has failed to provide the relevant documents before the Ld. CIT (E), the application was rightly rejected. 5. We have heard both the parties and perused the material available on record. The assessee did not comply the notice dated 05-03-2024 and has not furnished the details/ information as requisite by the Ld. CIT(E), by which the application of the assessee was rejected. Since in the instant case the Ld. CIT(E) has dismissed the appeal in non-submission of documents therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate, its claim and decide the issue as per fact and law.