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Facts
The assessee, a charitable trust, applied for renewal of approval under Section 80G(5)(iii) of the Income Tax Act. The CIT(E) rejected the application, citing non-compliance with requests for information and documentation regarding the genuineness of activities and fulfillment of conditions.
Held
The Income Tax Appellate Tribunal found that the assessee had physically submitted the required information, which the CIT(E) seemingly failed to consider. Therefore, the tribunal set aside the matter to the CIT(E) for re-adjudication after duly considering the assessee's reply and providing further opportunity if needed.
Key Issues
Whether the CIT(E) was justified in rejecting the assessee's application for 80G(5)(iii) approval on grounds of non-compliance, when the assessee claimed to have submitted the required documents.
Sections Cited
80G(5)(iii), 80G(5)
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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: Ms. SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA
O R D E R
PER SHRI NARENDRA PRASAD SINHA, AM:
This appeal is filed by the assessee against the order of the Commissioner of Income-Tax (Exemption), Ahmedabad, (in short ‘the CIT(E)’), dated 03.09.2024 rejecting the application of the assessee for approval under Section 80G(5)(iii) of the Income Tax Act, 1961 (in short ‘the Act’).
The brief facts of the case are that the assessee is a trust and had filed an application in Form No.10AB for approval u/s. 80G(5)(iii) of the Act. The Ld. CIT(E) had called for certain information in this regard vide questionnaire dated 06.07.2024, which was not complied. Thereafter, another notice dated 09.08.2024 was issued by the Ld. CIT(E) requiring the assessee [Jashbhai Gordhanbhai Charitable Trust vs. CIT(E)] - 2 – to furnish the details/information/clarifications as sought earlier, which was also not complied. The Ld. CIT(E) had, therefore, recorded a finding that the assessee had failed to file documentary evidences in respect of genuineness of the activities carried out by the institution and in support of the fulfillment of all the conditions as stipulated u/s.80G(5)(i) to (v) of the Act. Therefore, he rejected the application of the assessee for approval u/s. 80G(5)(iii) of the Act vide the impugned order and the provisional approval granted earlier was also cancelled.
Aggrieved with the order of the Ld. CIT(E), the assessee has filed the present appeal. The following grounds have been taken in this appeal:
“1. CIT(Exemption) Ahmedabad erred in law and on facts in renewal application for approval under section 80G(5)(iii) of The Income Tax Act, 1961 on ground of non-compliance.
2. The appellant says and submit that provisional approval U/s 80G(5) of the Act was granted to the trust from 27.03.2022 to Α.Υ. 2024-25. In response to filed renewal application in Form 10AB Online, a questionnaire dated 06.07.2024 was issued by the office of CIT (Exemption). The appellant sought adjournment. Again Notice dated 09.08.2024 was issued fixing date 21.08.2024 requiring certain information. The appellant submitted all the required information vide letter dated 21.08.2024. The learned CIT(Exemption) has without considering submission filed the on 21.08.2024, rejected the application for renewal of Exemption U/s 80G(5)(iii) of the IT Act on ground of non-compliance vide order dt. 03.09.2024.”
Shri B T Thakkar, Ld. AR of the assessee submitted that the assessee was granted provisional approval u/s. 80G(5) of the Act on 27.03.2022 for the A.Y. 2024-25. In response to the application in Form No.10AB filed online by the Trust, the Ld. CIT(E) had issued a questionnaire dated 06.07.2024 to which the [Jashbhai Gordhanbhai Charitable Trust vs. CIT(E)] - 3 – assessee had sought adjournment. Thereafter, the Ld. CIT(E) had issued another notice dated 09.08.2024 and the matter was fixed for hearing on 21.08.2024. The Ld. Counsel submitted that the assessee had filed all the details/clarifications as sought by the Ld. CIT(E) vide letter dated 21.08.2024, which was physically filed in his office on the same date. Considering this fact, the Ld. CIT(E) was not correct in giving a finding that the documentary evidences as called for were not submitted by the assessee. The Ld. AR further submitted that the Ld. CIT(E) was not correct in rejecting the application of the assessee without considering the reply physically filed in his office on 21.08.2024. He, therefore, requested that the matter may be set aside to the file of the Ld. CIT(E) with a direction to consider the reply of the assessee already filed and, thereafter, re-decide the matter.
Per contra, Ms. Malarkodi R., Ld. Sr. DR supported the order of the Ld. CIT(E). However, she had no objection if the matter was set aside with a direction to consider the reply physically filed by the assessee before the Ld. CIT(E) and, thereafter, re-adjudicate the matter.
We have considered the rival submissions. The Ld. CIT(E) had rejected the application of the assessee for approval u/s. 80G(5)(iii) of the Act for the reason that documentary evidences about the genuineness of the activities of the institution as well as the evidences for fulfillment of all the conditions laid down in clauses (i) to (v) of Section 80G(5) of the Act, were not filed by the assessee. On the other hand, assessee has submitted that all the information and documents as called for by the Ld. CIT(E)
[Jashbhai Gordhanbhai Charitable Trust vs. CIT(E)] - 4 – were duly filed vide letter dated 21.08.2024. A copy of the letter dated 21.08.2024 filed by the assessee has been brought on record and it is found that the said letter was physically filed in the office of Ld. CIT(E). It appears that the Ld. CIT(E) did not consider the reply of the assessee, which was physically filed in his office, while adjudicating the application for approval u/s. 80G(5)(iii) of the Act. We, therefore, in the interest of justice, deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to consider the reply of the assessee dated 21.08.2024, which was physically filed in his office and, thereafter, re-adjudicate the matter. In case the Ld. CIT(E) requires any additional information, the assessee may be allowed another opportunity of being heard and to furnish the required documents.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
This Order pronounced on 05/02/2025
Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 05/02/2025 S. K. SINHA True Copy आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant ��यथ� / The Respondent. 2. 3. संबं�धत आयकर आयु�त / Concerned CIT आयकर आयु�त(अपील) / The CIT(A)- 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,