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Facts
The assessee filed an application for approval under section 80G of the Income Tax Act. The CIT(E) rejected the application as the assessee failed to appear and submit necessary documents despite being issued notices.
Held
The Tribunal noted that while opportunities were provided, the assessee could not submit the required documents. Considering the facts and interest of justice, the case was remitted back to the CIT(E) for fresh consideration with a direction to afford a reasonable opportunity to the assessee.
Key Issues
Whether the CIT(E) was justified in rejecting the application for 80G approval without affording sufficient opportunity to the assessee, and if remitting the matter for fresh consideration is appropriate.
Sections Cited
80G, 12AB, 80G(5)
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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI. LAXMI PRASAD SAHU & SHRI. SOUNDARARAJAN K
Per Laxmi Prasad Sahu, Accountant Member :
This appeal filed by the assessee is against the Order passed by the CIT(E) vide DIN and Order No.ITBA/EXM/F/EXM45/2024- 25/1070597884(1) dated 25.11.2024, for rejection of application filed for approval under section 80G of the Act, on the following grounds of appeal:
Assessee filed Form 10AB dated 23.05.2024 for approval under section 80G(5) of the Act. Assessee is registered under section 12AB of the Act and it was issued notices by the CIT(E) dated 30.09.2024 and 17.10.2024 requiring the assessee to appear before the CIT(E). However, the assessee did not appear and neither filed any documents. The CIT(E) noted that as per section, assessee was mandated to submit necessary documents to prove the genuineness of the trust activities and fulfilment of all the conditions laid down in clause I to V of section 80G(5) of the Act. Therefore, the application in From 10AB dated 23.05.2024 was rejected and approval was cancelled.
The learned Counsel for the assessee submitted that CIT(E) has not granted sufficient time and passed Order without providing sufficient opportunity and requested that if a chance is given to the assessee, assessee will Page 3 of 3 comply with the notices issued by the CIT(E) in support of its application filed for approval under section 80G(5) of the Act.
On the other hand, learned DR supported the Order of the CIT(E).
Considering the rival submissions, we noted that the application has been rejected by the CIT(E) for want of proper representation from the assessee's side and opportunities were provided to the assessee but assessee was unable to submit any documents. Considering the facts of the case and in the interest of justice, we are remitting the issue back to CIT(E) for fresh consideration with direction that assessee shall be afforded reasonable opportunity of being heard and assessee is directed to comply with the requirements of the Revenue.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Pronounced in the court on the date mentioned on the caption page.