SHRESTHA KANOON SEWA SANSTHAN,GWALIOR vs. CIT EXEMPTION, BHOPAL
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI
Per Vijay Pal Rao, JM :
These two appeals by the assessee are directed against two
separate orders of CIT (Exemption) dated 07.12.2023 whereby the
applications of the assessee in From No.10AB for registration u/s
ITA Nos.87&88/Ind/2024 Shrestha Kanoon Sewa Sansthan 12 AB & approval u/s 80G(5) were rejected. The assessee has
raised following grounds of appeal:
The Ld. Commissioner of Income-tax (Exemption) erred in rejecting the application filed by the appellant for approval under Section 12AB of the Act as 'non-maintainable. 2. The Ld. Commissioner of Income-tax (Exemption) erred in denying the approval under Section 12AB of the Act on the ground that there was delay on the part of the appellant in filling of the response or /incomple response of notice issued. The Ld. Commissioner of Income-t (Exemption) failed to give opportunity of being heard. 3. That the appellant craves to leave add alter or amend any of the ground or before hearing. 2. At the time of hearing Ld. AR of the assessee has submitted
that CIT (Exemption) has rejected the applications of the assessee
for registration u/s 12 AB & approval u/s 80G(5) due to non
submissions of the complete reply on behalf of the assessee. He
has referred to the details of the notices issued by CIT (Exemption)
and submitted that in response to first the assessee has filed reply
which was considered by the CIT (Exemption) as incomplete and
thereafter another notice was issued in response to which assessee
filed an application for adjournment and sought time to collect
necessary details. However the case was again fixed within a short
period of one week and assessee could not collect requisite
documents. The Ld. Counsel of the assessee inadvertently did not
ITA Nos.87&88/Ind/2024 Shrestha Kanoon Sewa Sansthan respond to the said notice issued by the CIT (Exemption) dated
24.11.2023 as the assessee was gathering necessary details and
records to be furnished, thus the Ld. AR has submitted that it is
only due to inadvertence and bonafide mistake the last notice could
not be responded by the assessee and therefore the assessee be
given one more opportunity to furnish the requisite details and
documents for the consideration of the CIT (Exemption). He has
pleaded that the impugned order may be set aside and the matter
may be remanded to the record of the CIT (Exemption) for fresh
adjudication after giving one more opportunity to the assessee.
On the other hand Ld. DR has not raised any serious
objection if the matter is remanded to the record of CIT (Exemption)
for fresh adjudication after giving one more opportunity to the
assessee to furnish the requisite details.
We have considered the rival submissions as well as relevant
material on record. The CIT (Exemption) rejected the application of
the assessee for granting of registration u/s 12 AB & approval u/s
80G(5) vide impugned order as under:
ITA Nos.87&88/Ind/2024 Shrestha Kanoon Sewa Sansthan
The assessee has applied in Form 10AB for registration u/s 12AB & 80G(5) of the Act. under the new provision of Income Tax Act, 1961. Consequently, opportunity letters were issued to the assessee and various documents/details were called for, to process the said application and to verify the objects and activities of the assessee. The details of opportunity letters and response received in compliance thereof are as under:
S.No In respect of registration u/s 12AB & 80G(5)
Date of opportunity letters Hearing fixed on Date of reply issued
1 20.09.2023 30.10.2023 Incomplete reply
2 16.11.2023 23.11.2023 Adjournment letter filed
3 24.11.2023 01.12.2023 No reply received
Vide above referred letters various documents/information were called for. In response to the notice dated 20.09.2023, the assessee has submitted incomplete reply. Subsequently. notice was issued on 16.11.2023 to submit the complete reply of notice 20.09.2023. However, the society has filed adjournment letter only. The assessee request for adjournment has been considered. Further, notice was issued on 24.11.2023 to submit the documents. However, the society has not submitted any reply till date. After giving frequent opportunities, the society has not submitted the point wise reply of notice 20.09.2023. In view of the above, due to non- compliance of required documents/information filed by the assessee, the application of the assessee in Form 10AB for grant of registration u/s 12AB & 80G(5) of the Act is hereby rejected. 5. Thus it is clear that in response to the first notice assessee
filed reply which was found to be incomplete by the CIT (Exemption)
and thereafter, the second notice was issued for hearing on
ITA Nos.87&88/Ind/2024 Shrestha Kanoon Sewa Sansthan 23.11.2023 but the assessee filed adjournment letter seeking some
more time to file relevant details and documents. The CIT
(Exemption) fixed the hearing just after a week on 01.12.2023
which was not attended on behalf of the assessee nor any reply was
filed and consequently the applications of the assessee were
rejected. The assessee has explained the reasons for non response
to the last notice is due to inadvertence and bonafide mistake on
the part of the Ld. AR of the assessee and further the assessee was
yet to gather all the relevant details and documents. Accordingly in
the facts and circumstances of the case we find that the assessee
deserves one more opportunity to furnish the relevant documents
and details for consideration of CIT (Exemption) to satisfy himself
about the charitable nature of objects and genuineness of the
activities of the assessee. Hence, in the facts and circumstances of
the case and in the interest of justice the impugned orders of CIT
(Exemption) are set aside and both the matters are remanded to the
record of the CIT (Exemption) for fresh adjudication after giving one
more opportunity to the assessee to submit necessary details and
records.
ITA Nos.87&88/Ind/2024 Shrestha Kanoon Sewa Sansthan
In the result the appeal of the assessee is allowed for
statistical purpose.
Order is pronounced in the open court on conclusion of
hearing on 13.06.2024.
Sd/- Sd/- (B.M. BIYANI) (VIJAY PAL RAO) Accountant Member Judicial Member
Indore,_13.06.2024 Dev/Sr. PS
Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
