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Facts
The Assessee filed applications for registration under sections 12AB and 80G of the Income Tax Act, 1961, which were rejected by the Ld. CIT(E). The Assessee did not appear, but the Tribunal decided to hear the appeal based on the Department's Representative and available records.
Held
The Tribunal held that the Ld. CIT(E) should have provided an opportunity to the Assessee to produce documentary evidence to verify the genuineness and commencement of its charitable activities and their consonance with its objects, instead of rejecting the application outright.
Key Issues
Whether the Ld. CIT(E) was justified in rejecting the Assessee's application for registration under sections 12AB and 80G without providing an opportunity to the Assessee to submit documentary evidence.
Sections Cited
12AB, 80G, 1961
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Income Tax Appellate Tribunal, DELHI
Before: SHRI YOGESH KUMAR U.S. & SHRI MANISH AGARWAL
ORDER PER YOGESH KUMAR, U.S. JM:
These two appeals are filed by the Assessee against the order of the Commissioner of Income Tax (Exemption)-, Lucknow (‘Ld. CIT(E)’ for short) dated 27/09/2024 wherein the application filed by the Assessee for grant of registration u/s 12AB and 80G of the Income Tax Act, 1961 ('Act' for short) has been rejected.
None appeared for the Assessee. Considering the issue involved in the present Appeal we deem it fit to decide the Appeal on hearing the Ld.
Department's Representative and perusing the material available on record.
The Ld. Department's Representative vehemently submitted that the appellant has failed to substantiate the claim in support of the applications filed before the authority below, therefore, the applications have been rightly rejected which requires no interference at the hands of the Tribunal. Thus, relying on the orders of the Lower Authority, sought for dismissal of the Appeals.
We have heard the Ld. Departmental Representative and perused the material available on record. It can be seen from the order impugned, the Ld. CIT(E) has rejected the application on the ground thatthe applicant has failed to file documentary evidences to enable me to satisfy about the genuineness& commencement of its charitable activities and to verify these activities are in consonance with its objects. Considering the fact that the Assessee is claimed to be conducting charitable activities, the Ld. Ld. CIT(E) should have provided opportunity to the appellant to produce the documents and should have decided the application on its merit. Thus, we set aside the impugned orders of the Ld. CIT(E) and remand the matter to the file of Ld. CIT(E) with a direction to decide the applications afresh after providing opportunity of being heard to the Appellant. The Appellant is also at liberty to produce all the requisite documents to substantiate the claim of the Appellant.
In the result, the appeals of the Assessee are partly allowed for statistical purpose.