VIDHYA EDUCATION & CHARITABLE TRUST,VADODARA vs. THE CIT (EXEMPTION), AHMEDABAD

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 [Vidhya Education & Charitable Trust vs. CIT(E)] - 2 – 10.08.2024 was issued by the Ld. CIT(E) requiring the assessee 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:

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 28.05.2021 for the A.Y. 2024-25. In response to the application in Form No.10AB filed online by the Trust, the Ld. [Vidhya Education & Charitable Trust vs. CIT(E)] - 3 – CIT(E) had issued a questionnaire dated 06.07.2024 to which the assessee had sought adjournment. Thereafter, the Ld. CIT(E) had issued another notice dated 10.08.2024 and the matter was fixed for hearing on 22.08.2024. 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)

In the result, the appeal filed by the assessee is allowed for statistical purposes.