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Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI
This appeal by the Assessee-Trust is directed against the order passed by the DIT(E), Mumbai dated 29/05/2012 pertaining to the assessment year 2012-13, passed under section 80G of the Income Tax Act, 1961 (in short ‘the Act’), whereby assessee’s application seeking renewal of the recognition under section 80G of the Act has been declined.
(Assessment Year : 2012-13) 2. The relevant facts are that the Appellant-Trust filed an application with Director of Income Tax (Exemption) on 02/09/2011 seeking renewal of the recognition earlier granted under section 80G of the Act on 31/05/2001. The impugned order of the DIT(E) reveals that various details were called for, which were furnished by the assessee, except in relation to certain details called for by the DIT(E) vide letter dated 16/05/2012. As per the DIT(E), on the appointed date of hearing on 28/05/2012, the requisite details were not furnished and none attended at the time of hearing. As a consequence, the DIT(E) observed that the requisite material was not on record so as to enable him to be satisfied about the objects of the Trust and the genuineness of its activities. For the said reasons, he passed the impugned order on 29/05/2012 declining the renewal of recognition under section 80G of the Act.
In this background, the Ld. Representative for the assessee pointed out that all the requisite material is available on record and for that matter reference has also been invited to the Paper Book filed. In any case, a preliminary point was raised by the Ld. Representative for the assessee to the effect that the assessee would be satisfied at the present stage, if the matter is restored back to the file of DIT(E) enabling the assessee to meet with the requirements called for by the DIT(E).
The Ld. Departmental Representative appearing for the Revenue has not opposed the preliminary plea of the assessee for restoring the matter to the file of the DIT(E) for adjudication afresh.
Having considered the rival stands, we find enough merit in the preliminary plea of the assessee for remanding the matter back to the (Assessment Year : 2012-13) file of DIT(E) for fresh appraisal of assessee’s application seeking renewal of recognition under section 80G of the Act. Notably, in para-2 of the impugned order, the DIT(E) has listed out the details called for by him and the response of the Trust on various dates. In para-3, it is noted that on 16/05/2012, certain details were called for and the date of hearing was fixed for 28/05/2012. On this appointed date, as per DIT(E) neither the assessee attended and nor filed any written submissions. On the next day, i.e. on 29/05/2012 itself, the DIT(E) proceeded to decline assessee’s application primarily on the ground of non-compliance by the appellant. In our considered opinion, the appellant is a regular assessee on the records of the Department and moreover the registration granted to it under section 12A of the Act dated 24/09/2003, copy of which is on record, continues to operate and the impugned proceedings were for renewal of the recognition granted to it earlier by the DIT(E) on31/05/2001 under section 80G of the Act. Considering the entirety of facts and circumstances of the case, we deem it fit and proper to set-aside the impugned order of the DIT(E) and restore the matter back to his file for enabling the assessee to fulfil the requirements called for and only thereafter, the DIT(E) shall apply his mind afresh on the application of the assessee dated 2/9/2011 as per law. Needless to mention, the DIT(E) shall allow the assessee a reasonable opportunity of being heard before passing an order afresh as per law.
In the result, without going into the merits of the issue, the matter is restored back to the file of DIT(E), in the light of the aforesaid discussion.
(Assessment Year : 2012-13) 7. Resultantly, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 18/11/2015.