TEJMAN WELFARE TRUST,GOA vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE

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ITA 149/BANG/2021Status: DisposedITAT Bangalore09 September 20213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) improperly rejected the application without clearly indicating the deficiencies in the information provided. The matter was remitted back for fresh consideration.

What were the facts?

The assessee, Tejman Welfare Trust, applied for approval under sections 12A and 80G of the Income-tax Act. The CIT(Exemptions) requested specific information and documents to verify the trust's activities and genuineness.

What were the issues?

Whether the rejection of applications for approval under sections 12A and 80G was justified given the partial information provided by the assessee and the CIT(Exemptions)'s subsequent actions.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G,Section 13(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH : BANGALORE

Before: SHRI N.V. VASUDEVAN & SHRI CHANDRA POOJARI

For Respondent: Shri Muzaffar Hussain, Addl. CIT(DR)(ITAT), Bengaluru
Hearing: 09.09.2021Pronounced: 09.09.2021

Per Chandra Poojari, Accountant Member These are two appeals by the assessee directed against the order of CIT (Exemptions), Bangalore [CIT(E)] dated 04.02.2021.

2.

In the assessee is challenging the rejection of approval u/s. 12A of the Income-tax Act, 1961 [the Act] and in ITA No.150/Bang/2021, the assessee is challenging the rejection of approval u/s. 80G of the Act.

3.

The assessee applied for approval u/s. 12A of the Act as well as u/s. 80G of the Act and filed requisite details. The CIT(E) called for the following information:-

1.

Detailed note on activities of the trust/Institution since inspection or for the latest three years along with evidence, in the form of brochures, photos etc., 2. Non-infringement certificate u/s. 13(1)(c) signed by all trustees/members stating that there has been no Infringement of the provisions of section 11 & 13(1)(c) of the IT Act, 1961 since the expiry of earlier exemption granted u/s 80G of the I.T Act, to till date. 3. Provisional accounts from 01-04-2020 to till date. 4. Details of bank accounts operated by the trust (bank branch and a/c no.) and copy of the bank extract for two financial years. 5. Evidence like lease agreement or some document in support of the trust existing at the stated address. 6. Up to date list of donors & sample copies of receipts issued with date, amount & mode of payment. 4. The assessee furnished only partial information. According to the CIT(E), in the absence of relevant details, it was not possible to verify the genuineness of the objects and the activities of the trust. Accordingly he rejected the approval u/s. 12A as well as 80G of the Act. Hence the assessee is in appeals before us.

5.

None appeared on behalf of the assessee. We proceed to dispose of the case after hearing the ld. DR and perusing the material available on record. The CIT(E) called for certain information vide letter dated 6.1.2021. The assessee vide letter dated 12.1.2021 furnished partial information. Had the CIT(E) required further information, he should have pointed out the same to the assessee and called for it. He failed to do so. At the outset, he rejected the application of assessee stating that in the absence of relevant details, he is not in a position to verify the genuineness of the objects and the activities of the trust. In our opinion, this is not proper. In the interests of justice, we remit the entire issue to the CIT(E) for fresh consideration with a direction to the assessee to furnish all the required details as called for by the CIT(E) so as to facilitate him to examine the genuineness of the objects and the activities of the trust carried on by the assessee. Accordingly, with these observations, we restore the appeals to the CIT(E).

Pronounced in the open court on this 9th day of September, 2021.

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