INDIAN REDCROSS SOCIETY ANAND DISTRICT BRANCH,ANAND V. THE CIT (EXEMPTION), AHMEDABAD

ITA 1909/AHD/2024

AI Insights

The case involves the Indian Red Cross Society Anand District Branch appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for renewal of approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The CIT(E) had rejected the application on grounds of non-compliance, stating that the assessee failed to satisfy the genuineness of activities and the conditions prescribed under Section 80G(5)(i) to (v). The assessee contended that their submissions were ignored, leading to an erroneous rejection. The Tribunal found that the CIT(E) had indeed overlooked the submissions made by the assessee, which constituted a violation of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29565 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. NANDAKUMAR
• Assessee Lawyers: B.T. THAKKAR
• Keywords: Set aside; Principle of natural justice
• Section: 80G

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ “ B”, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “ B ” BENCH, AHMEDABAD सु\u0017ी सुिच\u0019ा का \u001aले, \u0012ा ियक सद\u001c एवं \u0017ी मकरंद वसंत महा देवकर, लेखा सद\u001c क े सम\"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.1909/Ahd/2024 िनधा \u0010रण वष\u0010 /Assessment Year : - Indian Redcross Society- Anand District Branch Sardar Bhavan Sardar Gunj Road Opp. Anand Municipality Anand-388 001 (Gujarat) बनाम/ v/s. The CIT(Exemption) Vejalpur Ahmedabad \u0014थायी लेखा सं./PAN: AAAT 19551 L अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee by : Shri B.T. Thakkar, AR Revenue by : Shri V. Nandakumar, CIT-DR सुनवाई की तारीख/Date of Hearing : 10/02/2025 घोषणा की तारीख /Date of Pronouncement: 12/02/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: ] ] This appeal by the assessee is directed against the order dated 03/09/2024 of the Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as “CIT(E)”], rejecting the approval under Section 80G(5)(iii) of the Income Tax Act, 1961 [hereinafter referred to as “the Act”]. Facts of the Case: 2. The assessee, Indian Redcross Society Anand District Branch, applied for renewal of approval under Section 80G(5)(iii) of the Act by filing Form ITA No.1909/Ahd/2024. Indian Red Cross Society Anand District Branch vs. CIT(Exemption) 2 10AB. The assessee was granted provisional approval under the said section on 05/04/2022 which was valid up to A.Y. 2024-25. 2.1. In response to the renewal application the CIT(E) issued a questionnaire on 06.07.2024, followed by a final notice on 10.08.2024, requiring compliance by 22.08.2024. 3. The assessee, in compliance with the notice issued, submitted the required information and documents on 21.08.2024. The submissions included a detailed note on the activities of the institute, a copy of the Rule, self-certified copies of financial statements for Financial Years (FYs) 2021-22, 2022-23 and 2023-24, details of donations received, bank statements, and proof of identity of trustees. These documents were filed to demonstrate the genuineness of activities and the fulfilment of conditions under Section 80G of the Act. 3.1. However, despite timely compliance, the CIT(E) rejected both applications on grounds of non-compliance. The order dated 03/09/2024 rejected the application under Section 80G(5)(iii) of the Act on the grounds of non-compliance, stating that the assessee had failed to satisfy the genuineness of activities, and the conditions prescribed under Section 80G(5)(i) to (v) of the Act. 4. Aggrieved by the rejection, the assessee has filed the present appeal before us, contending that CIT(E) has completely ignored the submissions filed on 21.08.2024, leading to an erroneous rejection order. The assessee has raised the following grounds in the appeal: - ITA No.1909/Ahd/2024. Indian Red Cross Society Anand District Branch vs. CIT(Exemption) 3 “1. CIT(Exemption) Ahmedabad erred in law and on facts in renewal application for approval under section 80G(5)(iii) of The Income Tax Act, 1961 on ground of non- compliance. 2. The appellant says and submit that provisional approval U/s 80G(5) of the Act was granted to the trust from 05.04.2022 to Α.Υ. 2024-25. In response to filed renewal application in Form 10AB Online, a questionnaire dated 06.07.2024 was issued by the office of CIT (Exemption). The appellant sought adjournment. Again Notice dated 10.08.2024 was issued fixing date 22.08.2024 requiring certain information. The appellant submitted all the required information vide letter dated 21.08.2024. The learned CIT(Exemption) has without considering submission filed the on 21.08.2024, rejected the application for renewal of Exemption U/s 80G(5)(iii) of the IT Act on ground of non-compliance vide order dt. 03.09.2024” 5. During the course of hearing before us, the Authorized Representative (AR) submitted that in reply to a notice relating to renewal under Section 80G(5)(iii) of the Act, the assessee had complied with the notice dated 10.08.2024 by submitting required documents on 21.08.2024. 5.1. The AR further stated that the CIT(E) ignored this submission and passed orders citing non-compliance, despite the fact that the submission was duly acknowledged by the department. The AR requested to restore the matter back to the file of CIT(E). The Departmental Representative (DR) did not object to restoring both matters for fresh adjudication. 6. It is evident from the record that the assessee filed its response on 21.08.2024, within the due date mentioned in the CIT(E)’s notice i.e. 22/08/2024. The CIT(E) ignored this submission and erroneously rejected the application citing non-compliance. Such an approach violates natural justice, as the assessee’s submission should have been duly considered before ITA No.1909/Ahd/2024. Indian Red Cross Society Anand District Branch vs. CIT(Exemption) 4 passing an adverse order. The CIT(E) did not examine the documents submitted and rejected the application on incorrect factual grounds. Given that the documents were submitted, the rejection was without proper verification. 6.1. Considering the facts, we set aside the order of the CIT(E) and restore the matter back to his file with the direction that the CIT(E) shall duly consider the assessee’s submission filed on 21.08.2024 and decide the matter afresh after granting an opportunity of hearing to the assessee. 7. The order under appeal is set aside and the issues are restored to CIT(E) for fresh adjudication. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 12th February,2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V.MAHADEOKAR) ACCOUNTANT MEMBER Ahmedabad, Dated 12/02/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS ITA No.1909/Ahd/2024. Indian Red Cross Society Anand District Branch vs. CIT(Exemption) 5 आदेश की ितिलिप अ!ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\" / The Appellant 2. #थ\" / The Respondent. 3. संबंिधत आयकर आयु% / Concerned CIT 4. आयकर आयु% ) अपील ( / The CIT(Exemption)-Ahmedabad 5. िवभागीय ितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स#ािपत ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 10.1.2025 2. Date on which the typed draft is placed before the Dictating Member. : 11.1.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 12.2.25 7. Date on which the file goes to the Bench Clerk. : 12.2.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "