A. V. VISION FOUNDATION,AHMEDABAD vs. PR. CIT (EXEMPTIONS), AHMEDABAD

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ITA 2455/AHD/2017Status: DisposedITAT Ahmedabad17 September 20182 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the PCIT's order was passed summarily without a proper speaking order or adequate opportunity for the assessee. Therefore, the matter was remitted back to the PCIT for fresh adjudication.

What were the facts?

The assessee, A.V. Vision Foundation, challenged the Principal CIT's rejection of its application for registration under Section 80G. The PCIT had rejected the application summarily, citing lack of charitable activity and commercial scale operations, as well as a lack of details.

What were the issues?

Whether the PCIT's rejection of the 80G application was justified without a speaking order and a fair opportunity to the assessee. Whether the assessee's activities were indeed charitable or commercial in nature.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD ‘D’ BENCH, AHMEDABAD

Per Pramod Kumar, AM:

1.

By way of this appeal, the assessee appellant has challenged correctness of the order dated 29.09.2017, passed by the learned PCIT, declining application under section 80G(5) of the Income Tax Act 1961, on the following ground :-

“The learned PCIT has erred in rejecting the application under Section 80G on the ground of noncompliance in as much as the assessee has complied and furnished the details called for.”

2.

While this appeal was being heard, it was noticed that the learned PCIT has dismissed the application rather summarily by observing that “It is noted that there is no charitable activity involved in the trust” and that “It is on commercial scale and levels”, and yet he has also observed that “application is liable to be rejected for want of details”. Learned counsel for the assessee submits that he is ready to furnish all such further particulars as may be requisitioned but the application should be disposed of by way of a speaking order, dealing with specific submissions of the assessee, and after

ITA No.2455/Ahd/2017 A.V. Vision Foundation vs. Pr. CIT (Exemptions) Page 2 of 2 giving a fair and reasonable opportunity of hearing to the assessee. Learned counsel undertakes to fully co-operate in expeditious disposal of remanded proceedings and to scrupulously comply with requisitions of the learned PCIT.

3.

Learned Departmental Representative does not seriously oppose prayer of the learned counsel, for fresh adjudication on merits, but relies on the stand of the learned PCIT.

4.

Having heard the rival contentions and having perused the material on record, we deem it fit and proper to remit the matter to the file of the learned PCIT, for fresh adjudication after giving yet another reasonable and fair opportunity of hearing to the assessee, in accordance with the law and by way of a speaking order. We order, accordingly.

5.

In the result, the appeal is allowed for statistical purposes in the terms indicated above. Pronounced in the open court today on the 17th September, 2018.

Sd/- Sd/- Mahavir Prasad Pramod Kumar (Judicial Member) (Accountant Member) Dated: 17th September, 2018 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File By order

Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

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