KDM FOUNDATION,NEW DELHI vs. CIT (EXEMPTION), NEW DELHI

By these appeals, Assessee has challenged the order passed by Commissioner of Income Tax (Exemption) [CIT(E)”,for short] order dated 28.11.2023, by which application filed by assessee / appellant seeking registration u/s 12A and approval under clause (iii) of the first proviso to section 80(G)(5) of the Income Tax Act, .-228 & 229/Del/2024 KDM Foundation 1961 (‘the Act’) was rejected. Since the underlying facts in the grievance are identical in the captioned appeals, these were heard together and are disposed of by this common order for the sake of convenience and brevity.

2. That the assessee is a not-fit-profit organization and every person associated with the assessee are honorary members and provide their services without any remuneration. Further, the concerned personnel looking after the documents was unavailable due to his personal reason and some of the documents asked for by the ITA (Exemption) officer could not be furnished on time. 3. That non-compliance of the said order dated 22.09.2023 of CIT (Exemption) was neither intentional nor deliberate but due to the bonafide reason of the assessee. 4. That assessee prays to the appellate authority to grant assessee the opportunity to produce the documents / information required as per the order dated 22.09.2023 of ITA (Exemption) in the interest of natural justice. 5. That the appellant craves leave to add, alter, amend or forego any ground(s) of the appeal raised above at the time of hearing.”

5. Per contra, the Ld. DR submitted that the assessee / appellant failed to provide required documents and information despite multiple opportunities. Their registration application U/s 12A was already rejected and therefore, their application for approval under U/s 80G of the Income Tax Act, 1961 was also rejected accordingly and relied upon order passed by lower authorities by stating that there is no any substance in the present appeal.

6. In totality of existing circumstances, in our humble opinion, object of law is to ensure substantive justice and Rule of Law are just to handmaid to administration of justice. Discussion and observations as hereinbefore enables us to reach this conclusion that the object of justice will fulfilled if one more opportunity may .-228 & 229/Del/2024 KDM Foundation provide to assessee / appellant in order to resolve the matter thoroughly.

7. Upon hearing both the parties, and overall circumstances, without discussing on merits of the case, matter is remitted back to the Ld. CIT(E) with the direction to afford meaningful and effective opportunity in accordance with law to the assessee/ appellant and decide afresh. The assessee / appellant shall co-operate in the proceeding for expeditious disposal before Ld. CIT(E) with providing all material / document / evidence in support of his claim and will not seek unnecessary adjournments.

Order pronounced in the Open Court on 18.07.2024