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Facts
The appeal was filed by the assessee against an order rejecting their application for approval under Section 80G(5) of the Income Tax Act. The appeal was filed with a delay of 27 days, which was condoned. The assessee had filed Form 10AB, but the CIT(E) rejected the application for non-compliance with a show-cause notice.
Held
The Tribunal found that the assessee was not given sufficient opportunity to furnish details in response to the show-cause notice issued by the CIT(E). Therefore, the matter was remanded back to the CIT(E) for fresh consideration.
Key Issues
Whether the assessee was provided with adequate opportunity by the CIT(E) to furnish details before rejecting the application for approval under Section 80G(5)?
Sections Cited
80G(5), 80G(5)(iv)B
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Before: Shri S.S. Viswanethra Ravi & Shri Jagadish
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 19.09.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai passed under section 80G(5) of the Income Tax Act, 1961 [“Act” in short].
We find that this appeal is filed with a delay of 27 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.
At the outset, we note that the assessee filed an online application on 29.03.2024 in Form No. 10AB seeking approval under clause (iv) B of first proviso to sub-section (5) of section 80G of the Act. The ld. CIT(E) show-caused the assessee as to why the said application should not be rejected in view of the reasons mentioned in para 2 of the impugned order. We note that According to the ld. CIT(E), the said notice was served on the assessee and no documentary evidences were furnished in response to the show-cause notice. Having no evidence, the ld. CIT(E) rejected the application seeking approval under section 80G of the Act.
The ld. AR Shri J. Saravanan, Advocate submits that the ld. CIT(E) issued show-cause notice dated 05.09.2024 requiring the assessee to furnish the details on or before 11.09.2024 and passed the order dated 19.09.2024 of rejecting the application of the assessee. The ld. AR vehemently argued that no sufficient opportunity was given to the assessee to furnish the details before the ld. CIT(E). Thus, he prayed that that one more opportunity may be afforded to the assessee to pursue its case before the ld. CIT(E) as the assessee is ready to file all relevant details in response to the show-cause notice issued by the ld. CIT(E).
The ld. DR Shri A. Sasikumar, CIT relied on the order passed by the ld. CIT(E).
On perusal of para 3.2 and 4 of the impugned order, we note that the ld. CIT(E) proceeded to reject the application seeking approval under section 80G(5)(iv)B of the Act for non-compliance of furnishing details in response to the show-cause notice, thereby, clearly establishes that the assessee has no opportunity before the ld. CIT(E). Taking into consideration the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter back to the file of the ld. CIT(E) for fresh consideration. The assessee is at liberty to furnish complete details as required by the ld. CIT(E). Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 05th March, 2025 at Chennai.