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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: MS. SUCHITRA KAMBLE & SHRI MAKARAND V. MAHADEOKAR
ORDER \nPER MAKARAND V. MAHADEOKAR, AM:\nThis appeal by the assessee is directed against the order dated\n03/09/2024 of the Commissioner of Income Tax (Exemption), Ahmedabad\n[hereinafter referred to as “CIT(E)"], rejecting the approval under Section\n80G(5)(iii) of the Income Tax Act, 1961 [hereinafter referred to as “the Act”].\nFacts of the Case:\n2. The assessee, Indian Redcross Society Anand District Branch, applied\nfor renewal of approval under Section 80G(5)(iii) of the Act by filing Form\n10AB.\nThe assessee was granted provisional approval under the said section\non 05/04/2022 which was valid up to A.Y. 2024-25.\n2.
1. In response to the renewal application the CIT(E) issued a\nquestionnaire on 06.07.2024, followed by a final notice on 10.08.2024,\nrequiring compliance by 22.08.2024.\n3. The assessee, in compliance with the notice issued, submitted the\nrequired information and documents on 21.08.2024. The submissions\nincluded a detailed note on the activities of the institute, a copy of the Rule,\nself-certified copies of financial statements for Financial Years (FYs) 2021-22,\n2022-23 and 2023-24, details of donations received, bank statements, and\nproof of identity of trustees. These documents were filed to demonstrate the\ngenuineness of activities and the fulfilment of conditions under Section 80G\nof the Act.\n3.
1. However, despite timely compliance, the CIT(E) rejected both\napplications on grounds of non-compliance. The order dated 03/09/2024\nrejected the application under Section 80G(5)(iii) of the Act on the grounds of\nnon-compliance, stating that the assessee had failed to satisfy the genuineness\nof activities, and the conditions prescribed under Section 80G(5)(i) to (v) of\nthe Act.\n4. Aggrieved by the rejection, the assessee has filed the present appeal\nbefore us, contending that CIT(E) has completely ignored the submissions\nfiled on 21.08.2024, leading to an erroneous rejection order. The assessee has\nraised the following grounds in the appeal:\n
1. CIT(Exemption) Ahmedabad erred in law and on facts in renewal application for\napproval under section 80G(5)(iii) of The Income Tax Act, 1961 on ground of non-\ncompliance.\n2. The appellant says and submit that provisional approval U/s 80G(5) of the Act was\ngranted to the trust from 05.04.2022 to A.Y. 2024-25. In response to filed renewal\napplication in Form 10AB Online, a questionnaire dated 06.07.2024 was issued by\nthe office of CIT (Exemption). The appellant sought adjournment. Again Notice\ndated 10.08.2024 was issued fixing date 22.08.2024 requiring certain information.\nThe appellant submitted all the required information vide letter dated 21.08.2024.\nThe learned CIT(Exemption) has without considering submission filed the on\n21.08.2024, rejected the application for renewal of Exemption U/s 80G(5)(iii) of the\nIT Act on ground of non-compliance vide order dt. 03.09.2024\"\n5. During the course of hearing before us, the Authorized Representative\n(AR) submitted that in reply to a notice relating to renewal under Section\n80G(5)(iii) of the Act, the assessee had complied with the notice dated\n10.08.2024 by submitting required documents on 21.08.2024.\n5.
1. The AR further stated that the CIT(E) ignored this submission and\npassed orders citing non-compliance, despite the fact that the submission was\nduly acknowledged by the department. The AR requested to restore the\nmatter back to the file of CIT(E). The Departmental Representative (DR) did\nnot object to restoring both matters for fresh adjudication.\n6. It is evident from the record that the assessee filed its response on\n21.08.2024, within the due date mentioned in the CIT(E)'s notice i.e.\n22/08/2024. The CIT(E) ignored this submission and erroneously rejected the\napplication citing non-compliance. Such an approach violates natural justice,\nas the assessee's submission should have been duly considered before\npassing an adverse order. The CIT(E) did not examine the documents\nsubmitted and rejected the application on incorrect factual grounds. Given\nthat the documents were submitted, the rejection was without proper\nverification.\n6.
Considering the facts, we set aside the order of the CIT(E) and restore\nthe matter back to his file with the direction that the CIT(E) shall duly\nconsider the assessee's submission filed on 21.08.2024 and decide the matter\nafresh after granting an opportunity of hearing to the assessee.\n7. The order under appeal is set aside and the issues are restored to\nCIT(E) for fresh adjudication.\n8. In the result, the appeal of the assessee is allowed for statistical\npurposes.\nOrder pronounced in the Open Court on 12th February,2025 at Ahmedabad.\nSd/-\nSd/-\n(SUCHITRA KAMBLE)\nJUDICIAL MEMBER\n(MAKARAND V.MAHADEOKAR)\nACCOUNTANT MEMBER\nAhmedabad, Dated\n12/02/2025\nटी.सी. नायर, व.नि. स. / T.C. NAIR, Sr. PS\nआदेश की प्रतिलिपि अग्रेषित/