WOMAN DEVELOPMENT FOUNDATION,PUNE vs. CIT(EXEMPTION), PUNE, PUNE

Briefly stated, the facts of the case are that on receipt of the assessee’s application for registration 80G of the Act along with annexures thereto, with a view to verify the genuineness of the activities of the assessee trust and fulfillment of conditions laid down in clauses (i) to (v) of section 80G(5) of the Act etc., the Ld. CIT(E) issued notice on 06.11.2024 through ITBA portal which was duly served on the assessee requesting the assessee to upload certain information/clarification such self-certified copy of order of regular approval under section 80G(5) in Form No. 10AC, date of such approval, date of expiry of such approval, proof of identity of main trustees / directors, year-wise list of donations received, note on activities carried out along with supporting credible evidence, details of religious objectives, details of expenses on religious objectives, details of income from profits and gains of business, details of provisions of trust deed / MoA for transfer or application of income for any purpose other than charitable purposes etc.. The information /details were called for under the provisions of sub-clause (a) of clause (ii) of second proviso to section 80G(5) of the Act to ascertain the overall nature of the activities of the assessee. The compliance was sought by 21.11.2024. The assessee was specifically informed that in the event of failure to comply by the due date i.e. 21.11.2024, the application of the assessee shall be liable to be rejected and the registration/approval shall also be liable to be cancelled. On verification of the details/documents filed by the assessee, the Ld. CIT(E) noticed few discrepancies which were communicated vide issue of another notice dated 08.01.2025 duly served on the assessee via email/e-portal, seeking compliance by 15.01.2025. The said discrepancies are reproduced below : "On verification of records and details furnished by you, it is seen that you have not furnished the copy of regular approval under section 80G(5)(vi) of the Income Tax Act, 1961. You have filed application under clause (ii) of first 3 proviso to section 80G(5) of the Act. The provisions of said section are applicable to a trust or institution which is regularly approved under section 80G(5)(vi) of the Act. As per the provisions of Rule 11AA(2)(e) of the Income Tax Rules, 1962, the copy of existing order granting approval was required to be submitted along with the application itself. Therefore, the copy of order of regular approval under section 80G(5)(vi) of the Act in form No.10AC issued under the provisions of clause (i) or clause (iii) of first proviso to section 80G(5) of the Act was required to be submitted by you along with the application, itself. You were also specifically requested vide the notice dated 06/11/2024 to furnish copy of such approval. However, it is seen that the copy of such regular approval is neither submitted along with the application nor submitted during the present proceedings till date. The copy of order of approval available on record is a provisional approval under section 80G(5)(vi) of the Act and not a regular approval. Further, it is also seen from the records that you have not made any valid application for regular approval under section 80G(5)(vi) of the Act."

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

The Ld. AR submitted that there was no intentional non-compliance before the Ld. CIT(E). He submitted that the assessee could not file its submission to the second notice within the prescribed due date as the consultant of the assessee was facing technical problem at his end in uploading the submission. He further submitted that the documents/ details called upon by the Ld. CIT(E) vide issue of second notice dated 08.01.2025 were already available on record of the Ld. CIT(E) as these were submitted in the previous reply of the assessee. He also contended that the assessee has filed the application under clause (ii) of the first proviso to section 80G(5) of the Act and that the assessee was already having a regular approval under clause (ii) of the first proviso to section 80G(5) of the Act and thus, issue raised in the show cause notice was totally irrelevant. Therefore, the approval u/s 80G(5) ought to have been granted to the assessee. He urged that as can be seen from the order of the Ld. CIT(E), adequate opportunity of hearing was not granted to the assessee to present its case before him. He submitted that given an opportunity the assessee is in a position to explain and substantiate its case before the Ld. CIT(E) and submit all the requisite details/documentary evidence in support of its application and respond to discrepancies noticed by the Ld. CIT(E). He, therefore, prayed that the matter may be set aside to the file of the Ld. CIT(E) to adjudicate the same afresh after on merits affording one more opportunity of being heard to the assessee.

The Ld. DR conceded to the above proposition of the Ld. AR.

We have considered the rival submissions and perused the records. It is an admitted fact that due to non-compliance to the notice issued by the Ld. CIT(E) asking for certain details and non-submission of copy of order of regular approval u/s 80G(5)(vi) of the Act, he rejected the application for grant of registration as non-maintainable. It is the submission of the Ld. Counsel for the assessee before us that given an 5 opportunity, the assessee is in a position to explain and substantiate its case before the Ld. CIT(E) by filing all the relevant details/documents. Considering the totality of the facts and in the circumstances of the assessee’s case, we are of the view that it would be judicially expedient and in the interest of justice and fair play if the matter is restored back to the file of Ld. CIT(E) to consider the assessee’s application for registration u/s 80G(5) of the Act afresh and decide the matter on merits, in accordance with facts and law after allowing one more opportunity of being heard to the assessee and present its case. The assessee shall provide the requisite support in terms of submitting the relevant details/documentary evidence as may be required/ called upon on the appointed date without seeking any adjournment unless for sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We order accordingly.

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