SPORTS FOUNDATION,PUNE vs. COMMISSIONER OF INCOME-TAX, EXEMPTION, PUNE

In this case, at the very outset, the assessee has filed an adjournment petition which was rejected. That on merits, it is seen that the solitary grievance of the assessee is the rejection of approval for exemption u/s.80G of the Act by the Ld. CIT(Exemption) vide order dated 03.10.2020. 3. The brief facts in this case are that the assessee/applicant made an online application in Form No.10G for grant of recognition u/s.80G(5)(vi) of the Act on 12.02.2020 as per the prescribed time limit extended to 31.03.2021 as per CBDT Notification No. S.O. 2033(E) dated 24.06.2020 read with provisions of the Taxation and Other Laws (Relaxation of Certain provisions) Ordinance 2020, No.2 of 2020 dated 31.03.2020. The assessee/applicant is registered under section 12AA of the Act vide order dated 15.04.2019. 4. That on perusal of the order of the Ld. CIT(Exemption), at Para 3, it is noticed that the assessee had claimed to have carried out various activities as per its objects and claimed expenditure on the same in its financial statements. The Ld. CIT(Exemption)‟s Office had requested the assessee to furnish supporting evidences in this regard. However, the assessee did not comply with the said notice and consequently, another notice was issued specifically requesting the assessee to furnish the copies of bills/vouchers in support of its claim of expenditure on activities. That as identified by the Ld. CIT(Exemption), the assessee had submitted some self-made vouchers which were not verifiable. In absence of necessary supporting credible evidence, the genuineness of the activities could not be verified by the Ld. CIT(Exemption)

We therefore observe that in order to grant exemption u/s.80G of the Act, it is very essential for the Ld. CIT(Exemption) to satisfy himself as per Section 80G(5) r.w.r.11AA of the Income Tax Rules, 1962. That the genuineness of the charitable activities undertaken by the assessee trust/institution should has to be ascertained. The assessee in this case was unable to furnish credible evidences specifically the bills/vouchers in respect of the expenditure claimed with regard to activities performed as per Object Clause of the assessee trust/institution. In all fairness, we are of the considered view, one more opportunity should be granted to the assessee for the very fact that Income Tax Legislations are welfare legislation and not penal legislation and therefore, adjudication on merits before the Ld. CIT(Exemption) is required. The Ld. DR did not raise any objection. Thus, we set aside the order of the Ld. CIT(Exemption) and remand the matter back to his file to re-adjudicate the issue as per law and at the same time, we direct the assessee/ applicant to file necessary evidences/documents before the Ld. CIT(Exemption) as would be called for so that the requirements of Section 80G(5) r.w.r.11AA of the Rules would be satisfied.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 25th day of June, 2021. INTURI RAMA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददनांक / Dated : 25th June, 2021 SB

The CIT (Exemption), Pune धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, “बी” बेंच, 4. पुणे / DR, ITAT, “B” Bench, Pune. गार्ड फ़ाइल / Guard File. 5. आदेशानुसार / BY ORDER,