ADIVASI SAHAYTA SAMITI JOBAT, Jobat V. CIT EXEMPTION, BHOPAL

ITA 489/Ind/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2671 (ITAT-INDORE)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-04-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 28-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ILA PARMAR
• Keywords: Charitable institution

Judgement Text

Page 1 of 11 आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No. 489/Ind/2023 A.Y.: 2023-24 Adivasi Sahayta Samiti Jobat, Infront of Sunrice Hostel College, Jobat, Distt. Jhabua बनाम/ Vs. CIT (Exemption), Bhopal (Appellant/Assessee) (Respondent/Revenue) PAN: AABAA4313L Assessee by Shri S.S. Solanki, C.A. & AR Revenue by Ms. Ila Parmar, CIT DR Date of Hearing 24.04.2024 Date of Pronouncement 30.04.2024 आदेश / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order dated 10.11.2023 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final registration u/s 12AA/12AB of Income-tax Act, 1961 has been rejected and the provisional registration granted u/s 12AB/12AA has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 2 of 11 2. Ld. AR for assessee carried us to the impugned order wherein the CIT(E) has assigned following precise reasoning for rejecting assessee’s application: “....... Subsequently, specific notice was again issued on 27.10.2023 to submit the following information/documents :- i. Please clarify whether you were registered u/s 12A/12AA before 01.04.2021. If yes, please provide copy of registration certificate. ii. On perusal of Form FC-4 and audit reports for last 3 FY, it is noticed that the donations has been received from “Alberto Anwander, Rue Hermann Geiger 19, Sion-1950, Switzerland, however, society has not submitted any related documents i.e. Request letter of donee, Sanction letter of donor and Utilization Certificate/Project details. Please submit the same. In response to notice dated 27.10.2023, the assessee has submitted few documents but the related documents of Foreign Contribution as mentioned above, have not been provided and only details of payments received through Banking Channel has been submitted by the assessee. The assessee in his reply also, only stated that the amount has been received through banking channel but no comments have been made regarding the required documents by which purpose of fund received and nature of expenditure is required to be determined. In absence of any document like Copy agreement, Request letter of donee, Sanction letter of donor and Utilization Certificate or Project details etc. purpose of funds received and its application for charitable purposes cannot be ascertained and the assessee fails to submit the required details after getting so many opportunities.” 3. Reading the above paras of CIT(E)’s order, Ld. AR submitted that the CIT(E) required the assessee to make submissions on two points, namely (i) to clarify whether the assessee was already registered u/s 12A/12AA before 01.04.2021, and (ii) to file documents of foreign donations like request-letter of donee, sanction letter of donor, utlization certificate/project details. In Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 3 of 11 response to same, the assessee filed a detailed reply with necessary supporting documents as under: Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 4 of 11 Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 5 of 11 Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 6 of 11 Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 7 of 11 Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 8 of 11 Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 9 of 11 4. Thus, Ld. AR submitted, the assessee filed copy of registration- certificate of assessee showing registration u/s 12A/12AA before 01.04.2021. Further, the assessee filed copy of FEMA declaration-cum- undertaking submitted to Bank, Proof of international payment and Utilisation-Certificate of foreign donations issued by a Chartered Accountant. Ld. AR submitted in Point No. (i) to (iv) of the Certificate, the Chartered Accountant has given complete details of foreign contributions received, utilized, etc.; thereafter in Point No. (v) to (vi) has certified that the assessee has maintained accounts of foreign contributions and lastly in Point No. (vii) has also certified that the assessee has utilized the foreign contributions received for the purpose(s). Thus, the assessee has given complete details to satisfy the CIT(E). Therefore, the CIT(E) ought to have granted registration as applied for. Ld. AR prayed to direct the CIT(E) to grant registration to assessee. 5. Per contra, Ld. DR for revenue supported the order of CIT(E). She referred the very same part of the order of CIT(E), as re-produced above, and submitted that the CIT(E) has clearly noted that the assessee filed few documents but not filed complete documents. Therefore, the CIT(E) has rightly rejected assessee’s application. 6. We have considered rival contentions of both sides and perused the impugned order as well as the material held on record to which our attention has been drawn. After a careful consideration, we find that the CIT(E) raised two queries in letter dated 27.10.2023. So far as first query as Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 10 of 11 to whether or not the assessee was having registration u/s 12A/12AA before 01.04.2021, the assessee filed a copy of registration-certificate showing that it was having such registration. The CIT(E) has not raised any objection qua this query in concluding para of his order, therefore the CIT(E) has already accepted assessee’s submission. Coming to second query raised by CIT(E), the CIT(E) asked the assessee to file details of foreign contributions for last 3 years but perusal of documents submitted by assessee shows that the FEMA Declaration-cum-undertaking and Proof of international payment are in connection with a donation received on 03.09.2023/05.09.2023 which is a very recent receipt and not for last 3 years. Further, the Certificate of Chartered Accountant is for the year 2021-22 only and not for all 3 years as required by CIT(E). Although it may be so that the assessee did not receive any contribution in other years but that fact is also mentioned in assessee’s reply. Therefore, the documents filed by assessee are apparently not sufficient as required by CIT(E). That apart, from the query raised by CIT(E), it is manifest that he required the assessee to submit some more details/documents like sanction-letter of donor, projectwise details, etc. but neither the assessee has filed those details/documents nor made any submission in reply that those details/documents could not have been filed or required. Therefore, the CIT(E) is justified in observing that the documents filed by assessee are not complete. In the situation, we feel it more appropriate to grant one more opportunity to assessee to make a proper and sufficient representation to the queries raised by CIT(E) to enable Adivasi Sahayta Samiti, Jobal ITA No. 489/Ind/2023- A.Y.2023-24 Page 11 of 11 the CIT(E) to consider the same and pass order afresh. Needless to mention that the CIT(E) shall open the window to enable the assessee to make submission, fix the hearings as required and pass a proper order after consideration of assessee’s submission without being influenced by his previous order. 7. Resultantly, this appeal of assessee is allowed for statistical purpose. Order pronounced in open court on 30.04.2024. Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक /Dated : 30.04.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore