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Facts
The assessee trust applied for registration under Section 80G. The CIT, Exemption, Pune issued notices for clarification on the genuineness of activities and fulfillment of conditions. The assessee failed to respond to a subsequent notice.
Held
The Tribunal set aside the order of the CIT and remanded the matter back for fresh adjudication, directing the assessee to comply with the notices and provide required documents.
Key Issues
Whether the CIT was justified in rejecting the application for registration under Section 80G without providing sufficient opportunity to the assessee, and whether the assessee's non-compliance with notices warranted rejection.
Sections Cited
80G, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 17.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G of the IT Act.
Facts of the case, in brief, are, that the assessee is a trust filed its application for registration in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 13.04.2024. With a view to verify the genuineness of activities of the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the IT Act, a notice was issued through ITBA portal on 05.06.2024 requesting the assessee to upload certain information/clarification on or before 20.06.2024. The assessee in response to above notice furnished desired information as mentioned in the notice. After verifying these details, Ld. CIT, Exemption, Pune found certain discrepancies and asked for their clarification on or before 11.10.2024. Since the assessee did not comply to this notice and has not furnished any explanation in reply to the above notice, Ld. CIT, Exemption, Pune was of the opinion that the condition (i) of section 80G(5) of the IT Act is not fulfilled & accordingly the application filed by the assessee was rejected and the provisional approval granted on 27.05.2021 under clause (iv) for first proviso to section 80G(5) of the IT Act was also cancelled. It is this order against which the assessee is in appeal before this Tribunal.
When the case was called for hearing, none appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceed to adjudicate the appeal with the able assistance of Ld. Departmental Representative and material available on records.
4. Ld. DR appearing from the side of the Revenue relied on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. DR and perused the material available on record. In this regard, we find that admittedly the assessee made compliance to the initial notice issued by Ld. CIT, Exemption, Pune, but the subsequent notice could not be answered by him. Considering the totality of the facts of the case & in the interest of justice, without going into the merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information in support of the application for registration without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are partly allowed.