SRI MARUTHI VIDYANIKETHAN,NALGONDA vs. CIT (EXEMPTION), HYDERABAD

Per Vijay Pal Rao, Vice President

Page 2 of 7 application in Form 10AB on 6/4/2024 for approval u/s 80G of the Act. The CIT (Exemption) issued notice, dated 8/6/2024 and 16/8/2024 calling for information from the assessee. The said two notices were duly complied with by the assessee with the replies along with specific information called for in the said notices. Thereafter, another notice dated 04/10/2024 was issued by the CIT (Exemption) which could not be responded before the impugned order passed by the CIT (Exemption), due to the reason that, the attachment to the email could not be downloaded and a message appeared on the screen that page not found. The learned AR of the assessee has referred to page Nos. 74 & 75 of the paper book and submitted that, the attachment to the email in PDF form could not be downloaded as per the message placed at page 75 of the paper book. Therefore, the assessee could not respond to the last notice issued by the CIT (Exemption). The learned AR of the assessee has thus, submitted that, when the assessee has already filed the requisite information and documents in response to the earlier 2 notices issued by the CIT (Exemption), then the rejection of application on the ground that, the assessee has not responded to the last notice is not justified. The learned AR of the Page 3 of 7 assessee has further stated that, the assessee is ready to produce all the requisite information and documents, if one more opportunity is given to the assessee.

Page 5 of 7 calling for specific information which was not responded by the assessee and the reasons now explained by the learned AR of the assessee for non-compliance of the said notice and that the assessee could not download the said notice attached to the email. It is pertinent to note that the assessee was earlier granted provisional approval u/s 80G of the Act and also granted a regular registration u/s 12AB of the I.T. Act, 1961 for a period of 5 years, vide order dated 18/07/2024. The registration already granted u/s 12AB is a relevant fact to be considered at the time of approval u/section.80G(5) of the Act. However, the learned CIT (Exemption) has rejected the application only on the ground of non-compliance of the last notice dated 4/10/2024. Once the assessee has duly complied with the earlier 2 notices, then the assessee ought to have been given one more opportunity for furnishing the requisite details and information. Since it was a case of time barring, therefore, the learned CIT (Exemption) passed the impugned order without giving further opportunity to the assessee. Accordingly, in the facts and circumstances of the case, we are of the considered opinion that the assessee deserves one more opportunity to furnish the relevant details and Page 6 of 7 information for the consideration of the learned CIT (Exemption). Hence, the impugned order is set aside and the matter is remanded to the record of the learned CIT (Exemption) for fresh consideration after giving an appropriate opportunity to the assessee to furnish the requisite details and information.