NIRANTAR SADHANA FOUNDATION,PUNE vs. CIT EXEMPTION , PUNE

The appeal filed by the assessee is directed against the order dated 23.12.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him in Form No. 10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 (the “Act”) on 13.06.2024.

The assessee has raised the following grounds of appeal : “On facts and circumstances and in law,

The brief facts are that on receipt of the assessee’s application filed in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Act along with annexures thereto, with a view to verify the genuineness of the activities of the assessee and fulfillment of the conditions laid down in clauses (i) to (v) of section 80G(5) of the Act, the Ld. CIT(E) issued notice on 15.07.2024 through ITBA portal requesting the assessee to upload certain information/clarification such as date of commencement of activity, date of expiry of provisional approval, details of any other law applicable for achievement of objectives and the proof of compliance of said law, proof of identity of main trustees/directors /trustees, year-wise list of donations received, note on activities carried out etc. The compliance was sought by 30.07.2024. On verification of the details submitted by the assessee, the Ld. CIT(E) noticed various discrepancies which were communicated vide issue of another notice dated 18.11.2024 duly served via e-portal/email, seeking compliance by 25.11.2024. The said discrepancies are reproduced below : “(i) You have furnished a general note on activities. Details like date and place of activity, details of beneficiaries, how they were identified, experts who rendered services, other relevant information has not been furnished. (ii) No supporting evidence viz bills/invoices of expenditure on each activity, photographs, cuttings etc has been furnished to prove the genuineness of activities. (iii) You have furnished only tax calculation sheet. As per the provisions of Rule 11AA(2)(g) of the Income Tax Rules, 1962, you were required to furnish copies of audited annual annual accounts for the F.Y. 2021-22 to 2023-24."

Aggrieved, the assessee is in appeal before the Tribunal and all the grounds of appeal relate thereto.

The Ld. Counsel for the assessee submitted that the assessee in response to the first notice has filed the various details. However, the assessee could not respond to the second notice issued by the Ld. CIT(E) on account of the mistake on the part of the employee of the trust. He submitted that the assessee has already been granted Section 12A registration. He further submitted that the impugned application of the assessee is not barred by limitation as it was filed within the extended due date i.e. 30th June, 2024 pursuant to CBDT Circular No. 7/2024 dated 25.04.2024. He accordingly submitted that in the interest of justice, the assessee should be given an opportunity to present and substantiate its case by filing the requisite details before the Ld. CIT(E).

The Ld. DR on the other hand strongly opposed the submissions made by the Ld. Counsel for the assessee.

We have heard the rival arguments made by both the sides and perused the material available on records. It is an admitted fact that the assessee did not respond to the second notice issued by the Ld. CIT(E) in which he has asked for certain details on account of some discrepancies found from the submissions made by the assessee earlier, for which he rejected the application filed by the assessee for grant of registration u/s 80G of the Act and also cancelled the provisional registration granted earlier. It is the submission of the Ld. Counsel for the assessee that due to the mistake on the part of the employee of the trust in not communicating the notice, the assessee could not respond to the second notice. He has also brought to our notice that the assessee’s present application is not barred by limitation as it was filed on 13.06.2024 which is well within the extended time permissible under Circular No.7/2024 dated 25.04.2024. It is also his submission that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

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