NILKANTESHWAR SERVA SEVASANGH,PUNE vs. CIT EXEMPTION, PUNE

It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Income Tax Act, 1961 and hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act and has left no alternative but to reject the application.

The Ld. AR at the outset submitted that due to non-compliance to the notice(s) issued by the Ld. CIT(E), he rejected the application for approval u/s 80G of the Act and also cancelled the provisional approval granted earlier. He submitted that non-compliance before the Ld. CIT(E) occurred due to certain unavoidable circumstances. He submitted that the assessee has already been granted registration under section 12A of the Act and a copy of section 12A registration certificate has been placed on record. He submitted that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). He accordingly submitted that in the interest of justice, the matter may be set aside to the file of the Ld. CIT(E) to decide the assessee’s application afresh after giving an opportunity of being heard to the assessee to present and substantiate its case.

We have heard the Ld. Representatives of the parties and perused the order of the Ld. CIT(E). It is an admitted fact that despite sufficient opportunities granted by the Ld. CIT(E), the assessee did not respond to the notice(s) for which he rejected the application for grant of approval u/s 80G of the Act, the reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the Ld. Counsel for the assessee that due to certain unavoidable circumstances, the requisite details could not be filed. It is also his submission that the assessee has been granted registration under section 12A of the Act which evidences the genuineness of the charitable activities being carried out by the assessee trust. He has therefore urged that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E) to his satisfaction. 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 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 filed by the assessee is allowed for statistical purposes.