SHALINI PRATISHTHAN,AHMEDNAGAR vs. CIT EXEMPTION , PUNE

Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 20.06.2024 for approval under sub clause (B) of (iv) of first proviso to sub section (5) of section 80G of the Act. With a view to verify the genuineness of the activities of the assessee and fulfillment of conditions laid down in clause (i) to (v) of section 80G(5) of the Act, a notice was issued through ITBA portal on 18.07.2024 requesting the assessee to upload certain information / clarification.

Without prejudice to the above, the provisions of clause (iii) of first proviso to section 80G(5) of the Act are applicable to a trust / institution which is provisionally 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 of approval was required to be submitted along with the application itself. Thus, the assessee was required to submit the copy of order of provisional approval u/s 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Income Tax Act, 1961. However, the assessee has not submitted copy of provisional approval under section 80G(5)(vi) of the Income Tax Act, 1961. The non- submission of copy of order of provisional approval u/s 80G(5) establishes the fact that the prerequisite of the provisions of clause (iii) of first proviso to section 80G(5) of the Act for approval u/s 80G(5) of the Income Tax Act, 1961 is not fulfilled.

In view of the above, the application filed by the assessee is hereby rejected.”

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 submitted that due to the mistake on the part of the accountant of the assessee trust in not informing the notice issued by the Ld. CIT(E) all these unfortunate events happened. She submitted that given an 3 opportunity, the assessee is in a position to substantiate its case by filing the requisite details before the Ld. CIT(E). She accordingly 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).

The Ld. DR on the other hand heavily relied on the order of Ld. CIT(E).

We have heard the rival arguments made by both the sides, perused the order of the CIT(E) and the paper book filed on behalf of the assessee. It is an admitted fact that despite sufficient opportunities granted by the Ld. CIT(E), the assessee did not respond to any of the notices 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 the mistake of the accountant of the trust, those details could not be filed. It is also her 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) 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(Exemption) 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(Exemption) is at liberty

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

अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent

4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file.