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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Shri TR Senthil Kumar & Shri Narendra Prasad Sinha
Date of hearing : 17-12-2024 Date of pronouncement : 20-12-2024 आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:-
This appeal is filed by the assessee against the denial of approval u/s. 80G(5)(iii) of the Income Tax, 1961 vide order dated 03/09/2024 passed by Commissioner of Income Tax (Exemption) [in short CIT(E)], Ahmedabad.
A.Y. N.A. Page No. 2 Muljibhai Patel Society for Research in Nephro Urology vs. CIT(Exemption)
The following grounds have been taken in this appeal: -
1. In law and in the facts and circumstances of the appellant's case, the order passed by the ld. CIT (Exemption), Ahmedabad rejecting application for registration of the trust u/s. 80G(5) of the Income Tax Act, 1961 is void ab initio and in violation of principles of natural justice hence being bad in law.
2. In law and on the facts and in the circumstances of the case of appellant, the ld. CIT (Exemption), Ahmedabad has erred in rejecting application for registration of the trust u/s. 80G(5) of the Income Tax Act, 1961 on the basis of incorrect reasons/observations. 2.1 In law and on the facts and in the circumstances of the case of appellant, the ld. CIT (Exemption), Ahmedabad has erred in not granting registration u/s 80G(5) of the Act to the appellant on the basis that the appellant has not provided the requisite details even when the appellant has duly filed all the necessary replies in response to notice issued by ld CIT(E).
3. The appellant craves leave to add, alter or amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal.”
3. Shri Dhrunal Bhatt, ld. counsel for the assessee submitted that the ld. CIT(E) had rejected the application filed by the assessee for approval u/s. 80G(5)(iii) of the Act for the reason that the documentary evidences in respect of genuineness of the activities of the trust and the other documents in support of fulfillment of conditions laid down u/s. 80G(5) of the Act, were not furnished. The ld. A.R. explained that in response to notice dated 10-01-2024 issued by the ld. CIT(E), the assessee had submitted a reply dated 21- 08-2024 clarifying the issues on which queries were raised as well as also enclosing the documents as required. Under the A.Y. N.A. Page No. 3 Muljibhai Patel Society for Research in Nephro Urology vs. CIT(Exemption) circumstances, the ld. CIT(E) was not correct in rejecting the application on the ground that the assessee has not furnished the documents as required. He, therefore, requested that the matter may be set aside to the ld. CIT(E) with a direction to re- examine the matter after allowing an opportunity of being heard to the assessee.
Per contra, Shri A.P. Singh, the ld. CIT-D.R. had no objection in setting aside the matter back to the file of CIT(E) for granting approval u/s. 80G(5) of the Act after due verification of the documents.
We have considered the rival submissions. It is found that in response to notice dated 10-08-2024 issued by ld. CIT(E), the assessee had filed a letter dated 21-08-2024 manually, which was duly acknowledged in the office of CIT(E). Further, a response was also made online informing that the details as required were filed manually on 21-08-2024. A copy of these correspondences have been brought on record by the assessee in the paper-book filed. Under the circumstances, the finding of the ld. CIT(E) that the assessee did not comply to the notice and that the documents/clarifications were not filed, is not found correct. We, therefore, deem it proper to set aside the matter to the file of ld. CIT(E) with a direction to grant A.Y. N.A. Page No. 4 Muljibhai Patel Society for Research in Nephro Urology vs. CIT(Exemption) proper opportunity of hearing to the assessee and thereafter pass order in the matter, in accordance with law.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 20-12-2024