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Facts
The assessee, Aastha Rehab Care Society, appealed against the CIT(Exemptions)'s order rejecting its application for exemption under Section 80G. The assessee contended that the order was non-speaking, lacked reasons for rejection, and was passed after the statutory six-month period for deemed approval.
Held
The Tribunal found that the CIT(Exemptions)'s order was not a speaking order as required by law, as it failed to provide detailed reasons for rejection. Therefore, the issues were restored to the CIT(Exemptions) for readjudication, with the liberty to seek further details.
Key Issues
Whether the CIT(Exemptions)'s order rejecting the application for Section 80G exemption was a valid speaking order; whether the application for 80G exemption should be deemed passed due to delay.
Sections Cited
80G
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,
Before: BEFORE SHRI GEORGE MATHANMANISH AGARWAL
Aastha Rehab Care Society Aastha Rehab Care Society Vs. CIT(Exemptions), CIT(Exemptions), At: At: Nimoi Nimoi Complex, Complex, Hyderabad Nimchauri, Nimchauri, PO: PO: Chandini Chandini Chowk, Cuttack Chowk, Cuttack PAN/GIR No. No.AADAA 8833 F (Appellant (Appellant) .. ( Respondent Respondent) Assessee by : S/Shri Prakash Kumar Jena, Dr. Sanjay Kr. Behura & Assessee by Kumar Jena, Dr. Sanjay Kr. Behura & Ananta Narayan Singhbabu, Advs Revenue by : Shri Saroj Kumar Dubey, CIT : Shri Saroj Kumar Dubey, CIT DR Date of Hearing : 29/01/20 2025 Date of Pronouncement : 29/01/20 025 O R D E R Per Bench This is an This is an filed by the assessee are directed against the against the separate orders of the ld CIT(Exemptions), Hyd of the ld CIT(Exemptions), Hyderabad dated 10 dated 10.12.2024 in Application No.CIT(Exp), Hyd/2024 CIT(Exp), Hyd/2024-25/12AA/12023 for the ass for the assessment year 2023-24 rejecting the applicatio rejecting the application for exemption 80 G of the Act. 80 G of the Act.
S/Shri Prakash Kumar Jena, Dr. Sanjay Kr. Behura & Ananta Narayan Prakash Kumar Jena, Dr. Sanjay Kr. Behura & Ananta Narayan Prakash Kumar Jena, Dr. Sanjay Kr. Behura & Ananta Narayan Singhbabu, ld AR d ARs appeared for the assessee and Shri Saroj Kumat Dubey, Saroj Kumat Dubey, ld CIT DR appeared for the revenue. DR appeared for the revenue. P a g e 1 | 4
Ld AR of the assessee drew our attention to para 3 of both the orders of ld CIT(E). It was submitted that all the information sought by the ld CIT(E) had been provided. It was the further submission that a non- speaking order has been passed whereby the assessee is unable to identify the reasons as to why the exemption has not been granted. It was the prayer that the ld CIT(E) may be directed to give the reasons for rejection of the registration of the Act. It was the submission that a perusal of the order of ld CIT(E) would show that the order rejecting the registration u/s 80 G is deemed to have been passed within six months from the end of the month in which the application is received by CIT (A) and six months have been crossed admittedly before granting rejecting registration u/s.80 G of the Act.
In reply, ld CIT DR submitted that the ld CIT(E) might have recorded the reasons in his order sheet and there is no deeming provisions. He submission that he had no objection if the issue is restored to the file of the ld CI(E) for passing a speaking order and reconsideration of the materials available.
We have considered the rival submissions. A perusal of the order of the ld CIT(E) shows that the last opportunity was granted for providing the details by the ld CIT(E) towards end of October, 2024 and the order has been passed in November, 2024. A perusal of the para 3 shows that the order of rejection is not a speaking order. The provision of the Act requires P a g e 2 | 4 that the reasons be given in details while application is being rejected. This being so, in the interest of justice, the issues in this appeal are restored to the file of ld CIT(E) for readjudication. The ld CIT(E) is also at liberty to call for any further details as may be required for adjudicating the issue of registration u/s 80G of the Act.
In the result, appeal of the assessee stands partly allowed for statistical purposes.
Order dictated and pronounced in the open court on 29/01/2025.