NASHIK SURGICAL SOCIETY,NASHIK vs. CIT(E), 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 fulfilment 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. 9 Without prejudice to the above, it is seen that the trust has obtained provisional registration in form 10AC under item (A) on 17/01/2024. However, as per submission the trust's activities were commenced atleast from the F.Y 2020-21-21 i.e. before the date of provisional registration Therefore, said provisions of sec.80G (5)(iv) (A) of the Act are not applicable to the assessee's case.

In view of the above, the application filed by the assessee is hereby rejected and the provisional approval dated 17/01/2024 under item (A) Sub-clause (A) of clause (Iv) of first proviso to sub-section (5) of section 80G(5) of the Income Tax Act, 1961 is hereby cancelled.”

Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds:

The Ld. Counsel for the assessee at the outset submitted that the hearing notices issued by the Ld. CIT(E) went to the e-mail ID of one of the old trustees instead of the e-mail ID mentioned in the application for which there was no compliance before the Ld. CIT(E). He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. CIT(E). He also filed the decision of the Pune Bench of the Tribunal in the case of Connecting Trust vs. CIT (Exemption), Pune vide order dated 14.02.2025 where the Tribunal has restored the issue to the file of the Ld. CIT(E) with a view to consider the application afresh treating the same filed under clause (iii) in accordance with law.

The Ld. DR on the other hand submitted that despite number of opportunities granted by the Ld. CIT(E), the assessee did not respond, therefore, the order of the Ld. CIT(E) should be upheld.

We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that despite a number of opportunities granted by the Ld. CIT(E), the assessee did not respond to the same for which the Ld. CIT(E) rejected the application for grant of approval 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 the notices went to the e-mail ID of the one of the old trustees instead of the correct e-mail ID which was given in the application form. It is also his submission that given an opportunity, the assessee is in a position to substantiate its case by filing all the relevant 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 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 CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the 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.