NAGESHWAR VIDHYA TRUST, SURAT V. CIT(EXEMPTION, AHMEDABAD

ITA 14/SRT/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2082 (ITAT-SURAT)
• Duration Of Justice: 2 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-05-2022
• Assessment Year: 2020-2021
• Appeal Filed On: 23-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Corroborative evidences
• Section: 11; 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No. 14/Srt/2020 (AY: 2020-21) Nageshwar Vidhya Trust, 56, Mahadev Nagar, Society, Sagrampura Ring Road, Surat. PAN No. AAATN 5109 R Vs. C.I.T.(Exemptions), Ahmedabad, Room No. 609, 6 th Floor, Aayakar Bhawan (Vejalpur), Ahmedabad-380015. Appellant/ assessee Respondent/ revenue Appellant represented by None Respondent represented by Shri H.P. Meena, CIT-DR Date of hearing 10/05/2022 Date of pronouncement 10/05/2022 Order under section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Ahmedabad (in short, the ld. CIT(E) dated 27/11/2019 for the Assessment year 2020-21. The assessee has raised following grounds of appeal: “1. The learned CIT(Exemption), Ahmedabad rejected 80G application without considering that all the required documents were submitted to Income Tax Department Ahmedabad manually by speed post on 10-11 June, 2019. 2. Rejecting 80G application on the ground that provisional financial statement for 2019-20 not provided without specifically asking for the same in notice is bad in law. 3. The learned CIT (Exemption), Ahmedabad rejected 80G application by ignoring 12A number provided and emphasized on receipt of12A certificate.” ITA No. 14/Srt/2020 Nageshwar Vidhya Trust Vs CIT(E) 2 2. The brief facts of the case are that the assessee is a trust, filed an application before learned Commissioner of income tax (exemption) “ld CIT(E)” in prescribed form No. 10G under Rule 11AA of the Income Tax Rules, 1962 (in short, the Rules) for registration under Section 80G(5) of the Income Tax Act, 1961 (in short, the Act) on 03/05/2019. The ld. CIT(E) issued notice dated 15/09/2019 through ITBA portal on registered e-mail ID/ e-filing portal as well as through speed post. In the said notice, the ld. CIT(E) requires certain details and notes on activities actually carried out by the assessee trust with documentary evidences. The ld. CIT(E) recorded in response to said notice, the assessee has neither furnished complete details nor sought any adjournment. Further, only some part compliance was made by the assessee-trust on 14/06/2019. The ld. CIT(E) recorded that to afford final opportunity, a final show cause notice was issued to the assessee on 07/11/2019 through ITBA Portal as well as through speed post on the address given to the assessee for seeking detailed note on activities actually carried out by the assessee trust with evidences. The ld. CIT(E) recorded that no response was made by assessee. No receipt and payment account, income and expenditure account and audited accounts for A.Y. 2017-18 was filed. Further, copy of registration under Section 12AA of the Act was also not furnished despite repeated notice. The ld. CIT(E) held that in absence of verification of ITA No. 14/Srt/2020 Nageshwar Vidhya Trust Vs CIT(E) 3 objects and activities carried out if any, could not be verified. Thus, the genuineness of activities is not established. The ld. CIT(E) held that in absence of complete information, the approval under Section 80G(5) of the Act cannot be granted and rejected the application vide his order dated 27/11/2019. 3. Aggrieved by the order of ld. CIT(E), the assessee has filed the present appeal before this Tribunal. The notice of hearing of appeal was served upon the assessee on more than two occasions through registered post acknowledgment (RPAD). None appeared on behalf of assessee today nor any application for adjournment was filed. The present appeal was filed on 24/1/2020 and has been listed on three occasions. Not a single document or any other document to substantiate the grounds of appeal is filed before the Tribunal. Therefore, we left with no option except to decide the appeal on the basis of material or evidence on record in the form of statement of fact and after hearing the submission of ld. CIT-DR for the Revenue. 4. The ld. CIT-DR for the Revenue submits that despite giving sufficient opportunity, the assessee failed to substantiate the activities carried out by the assessee nor furnished necessary evidence to prove the genuineness of activities and detailed notes thereon. In absence of sufficient evidence, application of assessee was rejected by ld CIT(E). Even before the ITA No. 14/Srt/2020 Nageshwar Vidhya Trust Vs CIT(E) 4 Tribunal, the assessee has not filed any single document or any written submissions to substantiate its grounds of appeal. 5. We have considered the submission of ld. CIT-DR for the Revenue and the statement of fact filed before us. We find that the ld. CIT(E) rejected the application under Section 80G of the Act for want of necessary evidence on the activities carried by the assessee-trust. The assessee failed to file the details genuineness of activities and the audited accounts for financial year (F.Y.) 2018-19 and provisional accounts for the period from 01/4/2019 to till filing the application for registration/approval. Before us, neither the officer bearer of the assessee-trust has come forward to explain and substantiate nor filed any written submission. In the statement of fact, the assessee submitted that the assessee was granted certificate under Section 12AA decades ago and assessee is not having any record of physical copy. The assessee is claiming exemption under Section 11 and 12 on the basis of registration under Section 12A of the Act, thus, there was no question of rejection of 80G application. It is also stated that Form 10G is complete and that all information were furnished within due time. We do not find any merit in the statement of fact in absence of any supporting evidence as required by ld. CIT(E) in its various show cause notices as recorded in para 6 of the impugned order. Therefore, we do not ITA No. 14/Srt/2020 Nageshwar Vidhya Trust Vs CIT(E) 5 find any merit in the grounds of appeal raised by the assessee and the same is dismissed. 6. In the result, this appeal of the assessee is dismissed. Order pronounced in the open court on 10 th May, 2022 at the time of hearing of appeal in virtual court. Sd/- Sd/- (Dr. ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated:10/05/2022 *Ranjan Copy to: 1. Assessee – 2. Revenue - 3. CIT(A) 4. CIT 5. DR 6. Guard File By order Sr.Private Secretary, ITAT, Surat