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Income Tax Appellate Tribunal, DELHI BENCHES ‘Friday/A’, NEW DELHI
Before: Ms. Sushma ChowlaDr. B. R. R. Kumar
Per Dr. B.R.R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of ld. CIT(Exemptions), New Delhi dated 22.03.2019.
2. Following grounds have been raised by the assessee:
1. Ld. CIT(Exemptions) has erred in rejecting the application u/s 80G(5)(vi) of the Income Tax Act, 1961 by not appreciating the facts on records and giving the finding which is contrary to its own order dated 27.09.2018 on same facts granting registration u/s 12AA of the Income Tax Act, 1961.”
3. The order of the ld. CIT(Exemptions) is reproduced in toto for the sake of convenience: “The applicant has filed application on 16.09.2018 in Form No 10G seeking exemption u/s 80G of the Income Tax Act, 1961. The applicant was issued letter dated 01.11.2018 requesting it to Mother Land. submit certain documents on 20.11.2018 in support of its claim of exemption u/s 80G of the Act.
On 19.11.2018, the applicant submitted part details which were placed on records. Subsequently, a letter dated 28.01.2019 was sent vide which another opportunity was given to the applicant to submit the requisite details and the applicant was requested for compliance on 04.02.2019. But, no reply was filed by the applicant on 04.02.2019. However, the applicant submitted details on 14.02.2019 & on 25.02.2019 which were placed on records.
On perusal of the records, it is seen that the applicant has not produced bills of expenses except a bill dated 08.02.2019, Serial No. 3645 in the name of Anupama Digital Studio & Gift Point of Rs. 1440/- only whereas it claimed expenses amounting to Rs. 8285/-, Rs. 59,182/- Rs. 95,508/- in balance sheet for financial years 2018-19(as on 10.02.2019), 2017-18 & 2016-17. Also, it is seen that almost all transactions made by the applicant are in cash. Hence it cannot be established that applicant has carried out charitable activity. This do not satisfy conditions that are laid down u/s 80G(5)(vi) of the Income Tax Act, 1961 read with rule 11AA of the Income Tax Rules, 1962.
4. In the light of the above facts, the charitable nature of activities of the institution cannot be established. In these circumstances, the application seeking exemption u/s 80G of I.T. Act is hereby rejected.
5. The applicant is, however, at liberty to apply afresh after completing the requisite details.”
During the arguments before us, the ld. AR argued that the application for seeking exemption u/s 80G of the Income Tax Act, 1961 has been rejected because the ld. AR could not produce the bills of Rs.8285/-, Rs.59,182/-. He submitted that owing to the personal attack by some miscreants while going to attend the hearing before the ld. CIT(Exemptions) he could not attend the hearing on the designated date. It was pleaded that the assessee has already been granted exemption u/s 12AA and there should not be any impediment to grant the Mother Land. registration u/s 80G in the normal course. It was pleaded that there is no reason for rejecting the application for exemption u/s 80G in the absence of any material contra. It was argued that the registration was rejected because bills could not be produced and bills could not be produced because of the personal attack on him.
The ld. DR argued that the ld. CIT(Exemptions) could not granted the exemption in the absence of the details being put forward by the assessee.
Heard the arguments of both the parties and perused the material available on record.
We find that the assessee has got a bonafide reason for not producing the bills before the ld. CIT(Exemptions). We feel that the interest of justice would be well served if the assessee is given an opportunity to represent the case before the ld. CIT(Exemptions). Hence, the case is being remanded back to the file of the ld. CIT(Exemptions) who would go through the matter afresh in considering the case denovo.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 20/02/2020.