ADIVASI SAHAYTA SAMITI JOBAT,JOBAT vs. CIT EXEMPTION, BHOPAL

Feeling aggrieved by order dated 10.11.2023 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final registration u/s 12AA/12AB of Income-tax Act, 1961 has been rejected and the provisional registration granted u/s 12AB/12AA has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).

Ld. AR for assessee carried us to the impugned order wherein the CIT(E) has assigned following precise reasoning for rejecting assessee’s application:

Reading the above paras of CIT(E)’s order, Ld. AR submitted that the CIT(E) required the assessee to make submissions on two points, namely (i) to clarify whether the assessee was already registered u/s 12A/12AA before 01.04.2021, and (ii) to file documents of foreign donations like request-letter of donee, sanction letter of donor, utlization certificate/project details. In Adivasi Sahayta Samiti, Jobal response to same, the assessee filed a detailed reply with necessary supporting documents as under:

Thus, Ld. AR submitted, the assessee filed copy of registration- certificate of assessee showing registration u/s 12A/12AA before 01.04.2021. Further, the assessee filed copy of FEMA declaration-cum- undertaking submitted to Bank, Proof of international payment and Utilisation-Certificate of foreign donations issued by a Chartered Accountant. Ld. AR submitted in Point No. (i) to (iv) of the Certificate, the Chartered Accountant has given complete details of foreign contributions received, utilized, etc.; thereafter in Point No. (v) to (vi) has certified that the assessee has maintained accounts of foreign contributions and lastly in Point No. (vii) has also certified that the assessee has utilized the foreign contributions received for the purpose(s). Thus, the assessee has given complete details to satisfy the CIT(E). Therefore, the CIT(E) ought to have granted registration as applied for. Ld. AR prayed to direct the CIT(E) to grant registration to assessee.

Per contra, Ld. DR for revenue supported the order of CIT(E). She referred the very same part of the order of CIT(E), as re-produced above, and submitted that the CIT(E) has clearly noted that the assessee filed few documents but not filed complete documents. Therefore, the CIT(E) has rightly rejected assessee’s application.

We have considered rival contentions of both sides and perused the impugned order as well as the material held on record to which our attention has been drawn. After a careful consideration, we find that the CIT(E) raised two queries in letter dated 27.10.2023. So far as first query as Adivasi Sahayta Samiti, Jobal to whether or not the assessee was having registration u/s 12A/12AA before 01.04.2021, the assessee filed a copy of registration-certificate showing that it was having such registration. The CIT(E) has not raised any objection qua this query in concluding para of his order, therefore the CIT(E) has already accepted assessee’s submission. Coming to second query raised by CIT(E), the CIT(E) asked the assessee to file details of foreign contributions for last 3 years but perusal of documents submitted by assessee shows that the FEMA Declaration-cum-undertaking and Proof of international payment are in connection with a donation received on 03.09.2023/05.09.2023 which is a very recent receipt and not for last 3 years. Further, the Certificate of Chartered Accountant is for the year 2021-22 only and not for all 3 years as required by CIT(E). Although it may be so that the assessee did not receive any contribution in other years but that fact is also mentioned in assessee’s reply. Therefore, the documents filed by assessee are apparently not sufficient as required by CIT(E). That apart, from the query raised by CIT(E), it is manifest that he required the assessee to submit some more details/documents like sanction-letter of donor, projectwise details, etc. but neither the assessee has filed those details/documents nor made any submission in reply that those details/documents could not have been filed or required. Therefore, the CIT(E) is justified in observing that the documents filed by assessee are not complete. In the situation, we feel it more appropriate to grant one more opportunity to assessee to make a proper and sufficient representation to the queries raised by CIT(E) to enable

Resultantly, this appeal of assessee is allowed for statistical purpose.