SAI SHEERA,SECUNDERABAD vs. CIT (EXEMPTION), HYDERABAD

The assessee has raised the following grounds of appeal:

The learned AR of the assessee has submitted that the assessee has responded to all the notices issued by the CIT (Exemptions) except the last notice and consequently, the CIT (Exemptions) has rejected the application on the ground of non- compliance. He submitted that the assessee filed all the relevant details and documents in response to the earlier notices dated 8/6/2024 and 16/8/2024. Only, the notice dated 4/10/2024 could not be responded to, due to unavoidable circumstances. Thus, the learned AR has submitted that once the assessee has furnished all the requisite details and documents to satisfy the CIT (Exemptions) that the assessee has carried out charitable activities and eligible for approval u/s 80G, then the rejection of the application on technical reason is not justified. He has thus pleaded that the impugned order of the CIT (Exemptions) should

On the other hand, the learned DR has submitted that the CIT (Exemptions) has recorded the fact that there is no compliance from the assessee to the notice issued and therefore, the requisite information was not furnished by the assessee. When the mandatory information was not produced before the CIT (Exemptions), then there was no occasion for satisfying himself by the CIT (Exemptions) that the assessee has carried out charitable activities and eligible for approval u/s 80G of the Act. He has relied upon the impugned order of the CIT (Exemptions).

We have considered the rival submissions as well as carefully perused the impugned order of the CIT (Exemptions). The CIT (Exemptions) has issued 3 notices dated 8/6/2024, 16/8/2024 and 4/10/2024. In response to the earlier notices, the assessee has duly filed the replies to the CIT (Exemptions) as placed at page 102 to 103 as well as 106 and 10s7 of the paper book. The CIT (Exemptions) finally rejected the application of the assessee by recording the reasons as under: “3. There is no compliance from the assessee so far. In light of the above facts, as the application in Form 10AB is to be decided in time bound manner and non-submission of mandatory information, the present application in Form 10AB for registration u/s 80G is infructuous and herewith rejected as non- maintainable”.

Thus, it is clear that when the record filed by the assessee in response to the earlier notices was available before the CIT (Exemptions), then the rejection of the application for non- compliance of the 3rd notice is highly arbitrary and unjustified. The CIT (Exemptions) ought to have given one more opportunity to the assessee to furnish the requisite details and information, if any, was not furnished earlier in response to the 2 notices. There is no discussion in the impugned order about the reply, details and documents filed by the assessee. Thus, in the facts and circumstances of the case, the impugned order of the CIT (Exemptions) is set aside, and the matter is remanded to the record of the CIT (Exemptions) for reconsideration of the application of the assessee after giving one more opportunity of hearing to the assessee to furnish the requisite details and information.

In the result, appeal filed by the assessee is allowed for statistical purposes.