ADIVASI SAHAYTA SAMITI JOBAT,JOBAT vs. CIT EXEMPTION, BHOPAL
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश / O R D E R
Per B.M. Biyani, A.M.:
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).
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Ld. AR for assessee carried us to the impugned order wherein the
CIT(E) has assigned following precise reasoning for rejecting assessee’s
application:
“……. Subsequently, specific notice was again issued on 27.10.2023 to submit the following information/documents :- i. Please clarify whether you were registered u/s 12A/12AA before 01.04.2021. If yes, please provide copy of registration certificate.
ii. On perusal of Form FC-4 and audit reports for last 3 FY, it is noticed that the donations has been received from “Alberto Anwander, Rue Hermann Geiger 19, Sion-1950, Switzerland, however, society has not submitted any related documents i.e. Request letter of donee, Sanction letter of donor and Utilization Certificate/Project details. Please submit the same. In response to notice dated 27.10.2023, the assessee has submitted few documents but the related documents of Foreign Contribution as mentioned above, have not been provided and only details of payments received through Banking Channel has been submitted by the assessee. The assessee in his reply also, only stated that the amount has been received through banking channel but no comments have been made regarding the required documents by which purpose of fund received and nature of expenditure is required to be determined. In absence of any document like Copy agreement, Request letter of donee, Sanction letter of donor and Utilization Certificate or Project details etc. purpose of funds received and its application for charitable purposes cannot be ascertained and the assessee fails to submit the required details after getting so many opportunities.”
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
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response to same, the assessee filed a detailed reply with necessary
supporting documents as under:
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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
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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
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the CIT(E) to consider the same and pass order afresh. Needless to mention
that the CIT(E) shall open the window to enable the assessee to make submission, fix the hearings as required and pass a proper order after consideration of assessee’s submission without being influenced by his previous order.
Resultantly, this appeal of assessee is allowed for statistical
purpose.
Order pronounced in open court on 30.04.2024.
Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक /Dated : 30.04.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore
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