DHANUSH FOUNDATION,HYDERABAD V. ITO(EXEMPTIONS), WARD-1(1), HYDERABAD

ITA 1221/HYD/2024

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Dhanush Foundation appealed against the decision of the Commissioner of Income Tax (Exemptions), who had dismissed their application for registration under sections 12AB and 80G as infructuous due to non-response to a final notice. The Foundation argued that they had partially responded to earlier notices but did not receive the final notice. The Tribunal found that the Commissioner should have considered the application on its merits, given the substantial information already provided, and not dismissed it on technical grounds.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39447 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Manjunatha G., Accountant Member and Shri K. Narasimha Chary, Judicial Member आ.अपी.सं /ITA No.1220/Hyd/2024 & 1221/Hyd/2024 (निर्धारण वर्ा/Assessment Year: 2024-25) Dhanush Foundation Hyderabad [PAN :AADTD1195L] Vs. Income Tax Officer (Exemptions) Ward-1(1) Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assesseee by: Shri A.V.Raghuram, AR Shri M.Narmada, CIT-DR सुिवधई की तधरीख/Date of Hearing: 22/01/2025 घोर्णध की तधरीख/Date of Pronouncement: 22/01/2025 आदेश / ORDER PER. MANJUNATHA G., A.M: These appeals filed by the assessee are directed against the orders dated 28.09.2024 of the learned Commissioner of Income Tax (Exemption) [Ld.CIT(E)], Hyderabad, pertaining to A.Y.2024- 25. Since the facts are identical and the issues are common, for the sake of convenience, the appeals filed by the assessee are heard together and disposed of by this consolidated order. 2. The brief facts of the case are that the assessee has filed e- application in Form 10AB seeking registration u/s 12AB and 80G of the Income Tax Act, 1961 (“the Act”). The Ld.CIT(E) issued 2 ITA No.1220 & 1221/Hyd/2024 M/s Dhanush Foundation notices dated 27.04.2024 and 22.05.2024 and called upon the assessee to produce the copy of Memorandum of Association / Trust deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response to the said notices, the assessee has submitted partial information. The Ld.CIT(E) issued one more notice dated 19.09.2024 as a final opportunity and called upon the assessee to submit full information as per the notices issued. Since the assessee did not respond to the notice issued on 19.09.2024, the Ld.CIT(E) dismissed the application filed by the assessee u/s 10AB of the Act for registration of the Trust / Society u/s 12AB and 80G of the Act as infructuous. 3. Aggrieved by the Ld.CIT(E) order, the assessee is now in appeal before the Tribunal. 4. The learned counsel for the assessee referring to order of the Ld.CIT(E) submitted that the assessee has furnished part information called for by the Ld.CIT(E), however, could not respond to notice dated 19.09.2024 to give further information as called for by the Ld.CIT(E) because the assessee did not receive the notice issued by the Ld.CIT(E). The Ld.CIT(E) rejected the application filed by the assessee as infructuous, without considering the application filed by the assessee on merits, even though the assessee has furnished substantial information, as called for by the Ld.CIT(E). Therefore, he submitted that the matter may be remanded back to the office of the Ld.CIT(E) to give another opportunity of hearing to the assessee to file relevant 3 ITA No.1220 & 1221/Hyd/2024 M/s Dhanush Foundation evidences in support of its application filed in Form 10AB, seeking registration u/s 12AB and 80G of the Act. 5. The Ld.CIT-DR on the other hand, supporting the order of the Ld.CIT(E) submitted that when the assessee could not file relevant information called for by the Ld.CIT(E), he has rightly dismissed the application filed by the assessee as infructuous and in the absence of relevant information, the application filed by the assessee cannot be considered as per law. 6. We have heard both the parties, perused the material on record and gone through the orders of the authorities below. Admittedly the assessee has responded to initial notices issued by the Ld.CIT(E) on 27.04.2024 and 22.05.2024 and furnished partial information. Although the assessee could not respond to subsequent notice dated 19.09.2024, but explained the reasons for not appearing and according to the assessee, notice issued by the Ld.CIT(E) was not served on the assessee. In our considered view, when the assessee has furnished substantial information in response to earlier notices and also filed relevant particulars in Form No.10AB, in our considered view, the Ld.CIT(E) ought to have considered application filed by the assessee on merits based on the material available on record and also certain information furnished by the assessee. However, in the present case he rejected the application filed by the assessee as infructuous, without considering the application on merits. Further, the learned counsel for the assessee claimed that the assessee is an existing Trust, got registration u/s 12A of the Act under erstwhile provisions of law and also filed application in Form No.10AB 4 ITA No.1220 & 1221/Hyd/2024 M/s Dhanush Foundation seeking permanent registration u/s 10AB and 80G under new regime of registration of Trust. Since the assessee is existing Trust and also is having provisional registration, in our considered view, the application filed by the assessee for permanent registration should have been considered on merits, rather than dismissing on technical grounds. Therefore, we set aside the order passed by the Ld.CIT(E) dated 28.09.2024 and restore the application filed by the assessee in Form No.10AB, seeking registration u/s 12AB and 80G of the Act to the file of the Ld.CIT(E). The assessee is directed to file relevant information to justify its application filed before Ld.CIT(E). The Ld.CIT(E) is directed to reconsider the application filed by the assessee after providing one more opportunity of hearing to the assessee. 7. In the result, appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the Open Court on 22nd January, 2025. Sd/- Sd/- (K. NARASIMHA CHARY) JUDICIAL MEMBER (MANJUNATHA G.) ACCOUNTANT MEMBER Hyderabad, Dated 22nd January, 2025 L.Rama, SPS 5 ITA No.1220 & 1221/Hyd/2024 M/s Dhanush Foundation Copy to: S.No Addresses 1 M/s Dhanush Foundation, 7-110/260, Villa No.260, SA Palm Meadows, Kompally, Hyderabad 2 The Income Tax Officer (Exemptions), Ward-1(1), Hyderabad 3 The Pr.CIT, Hyderabad 4 The DR, ITAT Hyderabad Benches 5 Guard File By Order "