KESHARWANI SHIKSHA SAMITI,JABALPUR vs. COMMISSIONER OF INCOME TAX (EXCEMPTION), BHOPAL

This is an appeal filed by the assessee against the orders of the learned Commissioner Income Tax (Exemption), Bhopal [hereinafter referred as the “Ld.CIT(E)”], rejecting the application of the assessee in Form No. 10AD for registration u/s 12A(1)(ac)(iii) of the Act. The grounds of appeal

The facts of the case are that following the filing of an application in Form No. 10AD for registration u/s 12A(1)(ac)(iii) of the Act, the Ld. CIT(E) issued a query letter to the assessee on Page 2 of 4 04.10.2024 with a request to furnish certain documents/clarification/information on 21 points. In response the assessee submitted a reply but the Ld. CIT(E) observed that a complete reply had not been provided and the assessee had submitted that the requisite details would be submitted shortly. These details related to activities, grants, affiliation of educational institutions that were run by the society. However, even after, a passage of two and half months, the assessee society did not file the said information. Therefore, the Ld. CIT(E) rejected the application of the society and also cancelled the provision registration granted earlier.

The assessee is aggrieved at this summary disposal of its application and has accordingly filed its appeal. Shri Sukesh Kumar, CA, (hereinafter referred as “AR”) submitted that the assessee was a educational institution running a Hindi Medium College/School for poor and middle class students. The society was very old and indulged in this activity right since 19th May, 1964. The schools and colleges run by the society were re- cognized/affiliated to the Government Institutions. The assessee society had applied for registration u/s 12AB on 18th March, 2024 and obtained provisional registration on 25th March, 2024. It had also applied for permanent registration on 30th June, 2024. The assessee had submitted replies to the notice dated 04.10.2024 except with regard to certain points and had specifically undertaken to submit these shortly. However, due to serious illness of the president of the society, who possessed the requisite documents and who subsequently passed away, shortly after passing of the said order by the Ld. CIT(E); documents in his possession could not be furnished in the time period of the Page 3 of 4 proceedings. It was further submitted that during the period of the issue of the first notice and the rejection of the application, the Department had not issued any reminders and also not given any show cause notice but only rejected the application because of this failure to comply. It was submitted that now all documents were available with the assessee and if opportunity was provided, it was in a position to place them before the Ld. CIT(E) to satisfy him of the activity of the society and other issues that he required clarification on. The Ld. AR placed reliance on certain judgments of the Pune and Jabalpur Tribunals in the case of Avileen Education Foundation, Vs CIT(Exemption), Pune Shri Vardhaman Shwetambar Sthanakwasi Jain Shravak Sangh vs CIT and Shri Gurutegh Bahadur Education Society vs CIT, to argue that in similar circumstances, the ITAT had remanded the matter back to the Ld. CIT(E).

On the other hand, the Ld. CIT-DR Shri Shrawan Kumar Meena, CIT-DR submitted that in view of these facts had now been brought to light, he had no objection to the matter being remanded back to the Ld. CIT(E) for a fresh decision in accordance with law.

We have duly considered the facts and circumstances of the case. We observe that due to the serious illness of the president of the society, who passed away shortly after the conclusion of the proceedings before the Ld. CIT(E), the requisite documents could not be presented by the assessee for valid reasons. Therefore, in the interest of justice, we deem it appropriate to restore the matter back to the file of the Ld. CIT(E), so that the necessary documents, which are now available Page 4 of 4 with the assessee can be presented before him and enable a fresh decision in accordance with law.

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