SATHYA SAI SEVA SAMAJAM,RAJAHMUNDRY vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD

These appeals are filed by the assessee against the orders of the Commissioner of Income Tax (Exemptions) [in short, [CIT(E)], Hyderabad in DIN & Order No.ITBA/EXM/F/EXM45/2022-23/1045881277(1) and ITBA/EXM/F/EXM45/2022-23/1045886169(1) dated 23.09.2022. Since the grounds raised in these appeals are identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. The facts are extracted from I.T.A. No.229/Viz/2022.

Brief facts of the case are that the assessee is a Trust having objects, charitable in nature, filed an e-application in Form No.10AB seeking approval u/s 80G(5) of the Income Tax Act, 1961 (in short ‘Act’). A notice u/s 80G(5)(iii) dated 23.08.2022 was issued to the address mentioned in the Form 10AB to produce the copy of Memorandum of Association / Trust Deed for verification and to furnish detailed reply on the specific information called for before 01.09.2022. But the assessee failed to furnish any information or documentary evidence and the Ld.CIT(E) has given final opportunity notice dt.03.09.2022, requesting the assessee to submit the information / documents as per the questionnaire given in detail through e-mail proceedings. However, the assessee has not filed any information or documentary evidence even for the final opportunity letter also. Hence, after careful consideration of the application for registration in Form No.10AB, the Ld.CIT(E) rejected the application seeking approval u/s 80G(5) for non submission of mandatory information.

On being aggrieved, the assessee preferred appeal before the Tribunal and filed written submissions, stating that the assessee failed to file its reply as the communication details registered on the Income Tax Portal belonged to one of the members of the assessee trust, who was sick at that time, lost his memory and was hospitalized. The Ld.AR produced the health reports and certificate obtained from the doctor before the Tribunal and submitted that some of the details called for were already submitted at the time of filing Form 10AB and the assessee could not submit the other information for the reasons beyond its control as mentioned above. Therefore, pleaded that one more opportunity of being heard may be given before the Ld.CIT(E) for which the Ld.DR has not raised any objection. 4. We have heard both the parties and perused the material placed on record. It is apparent from the records that the assessee has submitted most of the information asked for in the notice of hearing such as PAN, Society Registration Certificate, Bye Laws, Details of Members of the Society, copies of income tax returns, financial statements at the time of submission of application for registration u/s 80G itself before the Ld.CIT(E). On perusal of the written submissions filed in the paper book and the medical reports submitted by the assessee, we find that it is a fit case to grant one more opportunity of being heard to the assessee to furnish all the details / information sought by the Ld.CIT(E). Hence, we set aside the order passed by the Ld.CIT(E) and remit the matter back to the file of the Ld.CIT(E) with a direction to grant one more opportunity of being heard to the assessee. The assessee is also directed to cooperate with the Ld.CIT(E) and furnish all the relevant details / information sought by the Ld.CIT(E) without fail. 8. In the result, the appeals of the assessee are allowed for statistical purpose.