SONAI PRATISHTHAN ,PUNE vs. CIT(E), PUNE, PUNE

Facts of the case, in brief, are that the assessee filed an application before the CIT(Exemption) in Form No.10AB on 10.04.2023 for grant of exemption. The CIT(Exemption) vide its notice dated 03.08.2023 asked the assessee to furnish certain details to which the assessee responded by filing the documents on 12.08.2023 and thereafter on 19.08.2023. After verification of the documents furnished by the assessee, the CIT(Exemption) noticed various discrepancies for which he asked the assessee vide notice dated 06.10.2023 to furnish certain more details. Although the notice was duly served on the portal and e-mail and due date for the compliance was 11.10.2023, however, the assessee neither furnished any explanation nor responded on or before the due date. In view of the non- compliance by the assessee, the CIT(Exemption) rejected the application filed by the assessee as non-maintainable and accordingly, rejected the same.

Aggrieved with such order of CIT(Exemption), the assessee is in appeal before the Tribunal.

The Ld. Counsel for the assessee submitted that due to lack of technical knowledge, the concerned person of the trust could not see the notice dt 06.10.2023 sent through e-mail by the CIT(Exemption) asking for further details, for which all these unfortunate events happened. He submitted that given an opportunity, the assessee is in a position to file all the relevant details and substantiate its claim of exemption u/s 12A of the Act.

The Ld. DR on the other hand strongly supported the order of the CIT(Exemption).

We have heard the rival arguments made by both the sides and perused the order of the CIT(Exemption) and the paper book filed on behalf of the assessee. It is an admitted fact that despite due opportunity granted by the CIT(Exemption) vide letter dated 06.10.2023 fixing the date of compliance on 11.10.2023, neither the assessee responded to the said notice nor furnished any explanation on or before the due date for which the CIT(Exemption) treated the application as non- maintainable and accordingly rejected the application. It is the submission of the Ld. Counsel for the assessee that due to lack of knowledge of the concerned person of the trust, the notice issued by the CIT(Exemption) dated 06.10.2023 could not be seen and therefore, all these unfortunate events happened. It is also his submission that given an opportunity, the assessee is in a position to furnish all the relevant details as desired by the CIT(Exemption). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(Exemption) with a direction to grant one more opportunity to the assessee to substantiate its case by filing the requisite details. The CIT(Exemption) shall decide the issue as per fact and law after providing due opportunity of being heard to the assessee. The assessee is also hereby directed to submit the details on the appointed date of hearing without seeking any adjournment under any pretext, failing which the CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds of appeal raised by the assessee are accordingly allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.