Pragyawan Foundation, Ghaziabad V. ITO, Exemption, Ghaziabad

ITA 3004/DEL/2022

AI Insights

The case involves the Pragyawan Foundation appealing against the decision of the CIT (Exemption), Lucknow, which denied their application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The CIT (Exemption) had rejected the application due to non-compliance with several notices requiring documentation to verify the charitable nature and activities of the trust. The tribunal found that the assessee was not given adequate opportunity to respond to the notices and thus remitted the case back to the CIT (Exemption) for a fresh consideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113915 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 21-08-2023
• Assessment Year: misc
• Appeal Filed On: 22-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘F’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI YOGESH KUMAR US, JUDICIAL MEMBER ITA No.3004/DEL./2022 Pragyawan Foundation, vs. ITO, Exemption, 118, Crema Mahagun Mansion 1, Ghaziabad. Ghaziabad – 201 014 (Uttar Pradesh). (PAN : AADTP8886E) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Rohan Sogani, CA REVENUE BY : Shri Sanjay Gupta, CIT DR Date of Hearing : 22.08.2023 Date of Order : 24.08.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of ld. CIT (Exemption), Lucknow dated 27.10.2022. 2. Grounds of appeal taken by the assessee read as under :- “1. In the facts and circumstances of the case and in law the ld. CIT (Exemptions) has erred in denying the approval u/s 80G(5)(ii)(b)(8) of Income Tax Act, 1961. The action of ld. CIT (Exemptions) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by granting the approval u/s 80G(5)(ii)(b)(8) of Income Tax Act, 1961. ITA No.3004 /Del./2022 2 2. In the facts and circumstances of the case and in law, ld. CIT (Exemption) has grossly erred in rejecting the application for approval under Section 80G(5)(ii)(b)(B) of the Income Tax Act, 1961, without providing adequate opportunity to the assessee trust to make requisite submissions. The action of the ld. CIT (Exemption) is illegal, unjustified, arbitrary and against the facts of the case. Approval may please be granted under Section 80G(5)(ii)(b)(B).” 3. The assessee had filed an application dated 29.04.2022 for registration under section 80G(5)(iii) of the Income-tax Act, 1961 (for short 'the Act') in Form No.10AB. Ld. CIT (E) noted that several notices were issued for the assessee’s compliance but the assessee did not comply. Accordingly, ld. CIT (E) concluded as under :- “3. As the application has been submitted under sub clause (iii) of 80G(5) and accordingly an enquiry letter requiring such documents and information was sent to verify the genuineness of the activities as well as charitable nature and commencement of the activities. In absence of any reply charitable object and genuineness of the charitable activities of the assessee trust could not be proved. Hence the application of the above mentioned society is treated as "non-maintainable. 4. Accordingly the application filed by the assessee is hereby 'rejected'. However, no adverse inference is drawn against the assessee and rejection of its application shall not affect the provisional approval if any, granted u/s 12A/80G(5) of the Act, by the CPC.” 4. Ld. Counsel for the assessee prayed that very short notices have been given and he further prayed that one more opportunity may be granted to the assessee before the ld. CIT (E). ITA No.3004 /Del./2022 3 5. Upon careful consideration and in the interest of justice, we remit the issue to the file of ld. CIT (E). Ld. CIT (E) will consider the issue afresh after providing the assessee an opportunity of being heard. 6. In the result, the assessee’s appeal stands allowed for statistical purposes. Order pronounced in the open court on this 24 th day of August, 2023. Sd/- sd/- (YOGESH KUMAR US) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 24 th day of August, 2023 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (Exemption), Lucknow. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.