BR NATH PAI SHIKSHAN SANSTHA,KUDAL vs. CIT., EXEMPTION, PUNE

The learned AR for the assessee submits that the applicant trust was unable to submit various details as and when called for by the learned CIT Exemption’s office because of the covid-19 pandemic during that time. That vide ground no. 2 & 3 the assessee prays that for the fact that the pandemic was on going and assessee was not able to furnish relevant details/ informations therefore the assessee prays that the matter may be restored to the file of the learned CIT Exemption for fresh adjudication and the assessee also undertakes to provide the necessary documents/ information before the concerned authorities as would be called for. The learned DR conceded to these submissions of the assessee.

We have perused the materials on record, heard the parties analyzed the facts and circumstances in this case. The order of the learned CIT Exemption dated 21.09.2020 includes the observations as follows. “During the present proceedings, the applicant has not brought on record any new facts and also not furnished any explanation towards the discrepancies recorded in the earlier rejection order. The facts of the case remained the same. Further, the applicant has also failed to furnish the compliance of ordersheet entry 04/02/2020. Since the applicant had not provided any details/ explanation in respect of issues discussed in the earlier rejection order dated 30/05/2019, it was specifically given an opportunity dated 13/08/2019, duly sent through E-Portal, to furnish its compliance. However, the applicant has not responded to the same till date.”

It is therefore evident that inspite of opportunity given the assessee failed to comply with the hearing notices before the learned CIT Exemption and had also not filed any details which are relevant for considering the application for registration under 12AA of the Act. The Commissioner must be satisfied about the charitable objects of the trust and the genuineness of the activities of the applicant trust before granting registration u/s.12AA of the Act. In this case since no details were provided the learned CIT Exemption was therefore not able to verify these issues and accordingly has rejected the said application of the assessee. Before us learned AR submitted that due to covid-19 pandemic they were unable to procure relevant details/ documents and furnish it before the Revenue authorities and also that for the on going pandemic they were prevented from appearance for hearing before the learned CIT Exemption. The assessee assures before this Bench by making a statement at Bar that they would appear before the learned CIT Exemption and represent their case on merits if one final opportunity is given. The learned DR has not raised any objection for remanding the matter to the file of the learned CIT Exemption. In the interest of justice therefore we set aside the order of the learned CIT Exemption and remand the matter back to his file for fresh adjudication as per law and at the same time the assessee is directed to be present before the learned CIT Exemption with all details/ documents and represent their case on merits as per the assurance of presence for hearing given before this bench by the Ld.AR of the assessee. Needless to say learned CIT Exemption shall comply with the principles of natural justice. The grounds of appeal are allowed for statistical purposes.

In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 20th day of December, 2022.