VIDYARTHI VIKAS MANDAL,SANGLI vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE

Assessee by : Smt. Deepa Khare, Department by : Shri Ajay Kumar Keshari – CIT Date of hearing : 20-02-2025 Date of 28-02-2025 Pronouncement : आदेश / ORDER

PER ASTHA CHANDRA, JM :

1. The Ld. CIT Exemption erred in law and on facts in rejection of application for Approval u/s 80G(5) without considering the facts and circumstances of the case.

2. The appellant prays for opportunity so as to explain its case.

3. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.”

3. Briefly stated, the facts of the case are that on perusal of the assessee’s application along with annexures thereto, with a view to verify the genuineness of activities of the assessee trust and fulfillment of conditions specified in clauses (i) to (v) of section 80G(5) of the Act, the Ld. CIT(E) issued a notice through ITBA portal on 10.08.24, which was duly served via e-portal and email, requesting the assessee to upload certain basic details/ information/clarification by 27.08.2024. On verification of the details / documents submitted by the assessee, the Ld. CIT(E) noticed certain discrepancies (listed out in para 4 of his order) which were duly communicated to the assessee vide show cause notice dated 29.11.2024. The assessee was asked to show cause as to why the assessee’s application should not be rejected and why the provisional approval granted under section 80G(5) of the Act should not be cancelled in the light of the said discrepancies. The said show cause notice was duly served upon the assessee through e-portal and email, the compliance of which was due by 06.12.2024. However, the assessee neither furnished any explanation nor availed the opportunity of hearing granted by the Ld. CIT(E). In the absence of any information furnished by the assessee, the Ld. CIT(E) presumed that the assessee trust has nothing to say in the matter. He, therefore found himself unable to draw any conclusion about the genuineness of the activities of the assessee trust and fulfillment of conditions specified in clauses (i) to (v) of section 80G(5) of the Act. He further noticed that the assessee is neither regularly registered under section 12AB read with section 12A(1)(ac)(i)/(iii) of the Act nor having regular approval under section 10(23C) of the Act and that the assessee’s case does not fall within the purview of exclusions provided under proviso to clause (i) of section 80G(5) of the Act. Further, it is also not a regimental fund/ non-public fund and not having approval under section 10(23AA) of the Act, therefore the condition (i) of section 80G(5) of the Act is also not fulfilled by the assessee. He, therefore, rejected the application for registration filed by the assessee and also cancelled the provisional approval granted on 19.01.2023 u/s 80G(5)(vi) read with clause (iv) of first proviso to section 80G(5) of the Act .