VNA FOUNDATION,NEW DELHI vs. CIT(E), NEW DELHI

In this case assessee filed applications under prescribed forms for grant of registration under section 12AA and exemption under section 80G of the I.T. Act, 1961. The Ld. CIT(E) issued questionnaire dated 07.02.2019 requesting to furnish the documents in support of the applications. However, nobody attended the proceedings before the Ld. CIT(E). The Ld. CIT(E) again on 17.06.2019 issued similar letter and granted an opportunity, but, on the date of hearing on 01.07.2019 nobody attended the proceedings before him. The applicant, however, filed certain details on 15.07.2019 which are placed on record and perused by him. The Ld. CIT(E) on perusal of the income and expenditure observed that assessee has incurred expenditure of Rs.3,40,000/- on donation and Rs.18,750/- on tree plantation. The assessee donated the amount of Rs.3,40,000/- to other Trust, but, has not carried out any activity on its own. The Ld. CIT(E) in the 3 ITA.No.7799 & 7800/Del./2019 VNA Foundation, New Delhi. absence of requisite details to show charitable activity and genuineness of the activities of the assessee, rejected the both the applications.

After considering the rival submissions, we are of the view that the matter requires reconsideration at the level of the Ld. CIT(E). Learned Counsel for the Assessee submitted that assessee filed voluminous details before Ld. CIT(E) which have not been considered. The Ld. D.R, therefore, submitted that matter may be remanded to the Ld. CIT(E) for examination because his satisfaction is necessary on the documents alleged to have been submitted by the assessee. The impugned order shows that assessee did not respond to the queries raised by the Ld. CIT(E). However, certain details have been filed. But, according to the Learned Counsel for the Assessee voluminous details were filed which have not been discussed in the impugned order. Considering the totality of the facts and circumstances of the case noted above and that impugned order did not discuss the details furnished on record clearly show that matter requires reconsideration at the level of the 4 ITA.No.7799 & 7800/Del./2019 VNA Foundation, New Delhi. Ld. CIT(E). In view of the above, we set aside the impugned orders and restore both the appeals in issue to the file of Ld. CIT(E) with a direction to re-decide both the applications as per Law, by giving reasonable, sufficient opportunity of being heard to the assessee. The assessee is directed to cooperate before Ld. CIT(E) for finalisation of the matter in issue instead of not attending the proceedings. Accordingly both the appeals of the assessee are allowed for statistical purposes.

In the result, both the appeals of the assessee are allowed for statistical purposes.