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Facts
The assessee filed an application for approval under section 80G of the Income Tax Act, 1961. The Ld. CIT(E) sought details to justify the claim, but the assessee requested to withdraw the application via email, which was allowed. However, the Ld. CIT(E) proceeded to comment on the merits of the case.
Held
The tribunal held that the Ld. CIT(E)'s comments on the merits of the case after allowing the withdrawal of the application were against the principles of natural justice. Therefore, the matter was remanded back to the Ld. CIT(E) to be heard afresh.
Key Issues
Whether the Ld. CIT(E) erred in commenting on the merits of the case after allowing the assessee's request to withdraw the application for approval under section 80G.
Sections Cited
80G of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
आयकर अपीलीय अधिकरण] जयपुरन् यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 348/JPR/2024 cuke The CIT (Exemption) Jain Medical and Education Society 23-24, Satya Vihar Colony, Pankaj Vs. Jaipur. Singhvi Marg, Lal Kothi, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABAJ4737D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri P. C. Parwal (C.A.) jktLo dh vksjls@Revenue by : Shri Arvind Kumar (CIT) lquokbZ dh rkjh[k@Date of Hearing : 29/05/2024 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 28/06/2024 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M. This is an appeal filed by the assessee against orders of the Learned Commissioner of Income Tax (Exemption), Jaipur [herein after referred to as “Ld.CIT(E)] dated 20.02.2024 passed under section 80G of the Income Tax Act, 1961.
The assessee has raised the following grounds of appeal:- 2.
“1. The Ld. CIT(E) has erred on facts and in law in holding that since assessee has not submitted any details to ascertain genuineness of the activities as per its objects and that assessee has also withdrawn the application for approval
2 Jain Medical and Education Society vs. CIT(E) u/s 80G(5)(iii), therefore, application is rejected and otherwise approval cannot be granted. 2. The appellant craves to alter, amend and modify any ground of appeal
3. Necessary cost be awarded to the assessee.”
3. The appeal arise because aggrieved from the following finding of Ld. CIT(E):- “The applicant filed application on 30.09.2023 in Form No. 10AB seeking approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961. The applicant was issued a letter/notice No. ITBA/EXM/F/EXM43/2023-24/1060133907(1) dated 25.01.2024 to furnish certain documents/details to justify its claim for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961.
In response to the above, the applicant has requested for withdrawing the application through e-mail dated 16.02.2024 for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 and has stated as under:-
…………..We want to withdraw our application filed for permanent approval u/s 80G(5).
In the light of the above facts and applicant's request to withdraw the aforementioned application for approval under clause (iii) of first proviso to sub- section (5) of section 80G of the Income Tax Act, 1961, the applicant's application for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act. 1961 is hereby withdrawn. Even otherwise assessee has not submitted any details as called for to ascertain genuineness of activities and whether doing activities as per objects or not, thus 80G cannot be granted.”
3 Jain Medical and Education Society vs. CIT(E) 4. During the course of hearing, the ld. AR for the assessee submitted that before Ld. CIT(E) that the assessee want to withdraw the application for approval (permanent) u/s 80G(5) of the Act which he also supported along with newspaper publication. The said communication was given by e-mail dated 16.02.2024. Thus, when the assessee was allowed to withdraw the application, the Ld. CIT(E) should refrain from commenting upon the merits of the case. In the light of this facts even the assessee now cannot apply a fresh and therefore, the matter be remanded back to the file of Ld. CIT(E).
Per contra, the ld. DR relied on the orders of the ld. CIT(E) and objected to the prayer of the ld. AR of the assessee.
6 We have heard the rival contentions and perused material available on record. We note that the ld. CIT(E) in his order has observed as under:-
“03. In the light of the above facts and applicant’s request to withdraw the aforementioned application for approval under clause (iii) of first proviso to sub-section (5) of Section 80G of the Income Tax Act, 1961, the applicants’ application for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Act, 1961 is hereby withdraw. Even otherwise assessee has not submitted any details as called for to ascertain genuineness of
We note that the assessee was allowed for withdrawing the application through e-mail dated 16.02.2024 for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961. The assessee himself has withdrawn the application of 80G(5) and the same was allowed. In that situation the comments on the merits of the case is against the principles of natural justice and therefore, considering the peculiar set of facts presented before us, we are of the considered view that the matter thus now to be hard a fresh by the ld. CIT(E). Based on these observations, the matter is remanded back to the file of ld. CIT(E).
In the result, the appeal of the assessee is allowed for statistical purposes, Order pronounced in the open court on 28/06/2024. Sd/- Sd/- jkBksM deys'k t;UrHkkbZ ½ ¼MkWa-,l-lhrky{eh½ (RATHOD KAMLESH JAYANTBHAI) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 28/06/2024 *Ganesh Kumar, Sr. PS आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- Jain Medical and Education Society, Jaipur.