South Asian Fraternity, New Delhi V. CIT(Exemption), New Delhi

ITA 6573/DEL/2019

AI Insights

The South Asian Fraternity appealed against the order of the Learned Commissioner of Income Tax (Exemption) which rejected their application for registration under section 12AA of the Income Tax Act, 1961, and consequently, the approval under section 80G was also rejected. The appellant argued that they had provided all necessary details in a previous submission, and claimed not to have received a subsequent request for more information from the CIT (Exemption). The tribunal found that the CIT (Exemption) had not adequately discussed the evidence on record or justified the need for additional information, leading to the decision to allow the appeal and remand the case for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121165 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 13-06-2023
• Assessment Year: misc
• Appeal Filed On: 06-08-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA Nos.6573 & 6574/Del/2019 (Assessment Years : N.A.) South Asian Fraternity 109, Basement, Vinoba Puri, Lajpat Nagar, Part-2 New Delhi – 110 024 PAN No. ABAAS 0379 Q Vs. CIT (Exemption) New Delhi (APPELLANT) (RESPONDENT) Assessee by Shri Sanjay Agarwal, C.A. Revenue by Shri Yogesh Nair, Sr. D.R. Date of hearing: 14.06.2023 Date of Pronouncement: 14.06.2023 ORDER PER ANUBHAV SHARMA, JM : The appellant has come in appeals against the order dated 15.05.2019 passed by the Learned Commissioner of Income Tax (Exemption) [in short ‘Ld. CIT(E)’] u/s 12AA of the Income Tax Act, 1961 (hereinafter referred as “the Act”) by which an application granting registration u/s 12AA was rejected and consequently, approval u/s 80G was also rejected. 2. The grounds raised in appeals are reproduced for convenience and for understanding the issue : ITA Nos.6573 & 6574/Del/2019 South Asian Fraternity vs. CIT(E) 2 “1. That the order of the Ld. CIT(E), Delhi is bad in law and wrong on facts. 2. That on the facts and in the circumstances of the case, the Ld. CIT(E) has erred in rejecting the application for registration u/s 12AA of the Income Tax Act, 1961 despite filing all the details as required. 3. That the appellant craves leave to reserve to itself the right to add, alter amend or vary and ground(s) at or before the time of hearing.” 3. At the time of hearing, Learned AR made submission that the letter dated 07.05.2019 by which the assessee was called upon to submit requisite details by 13.05.2019 was not received. It was submitted that at the same time by letter dated 04.01.2019 all the relevant information was provided to the Learned CIT(E). 4. Although, Learned DR supported the findings of Learned CIT(E), however, he could not justify the error on the part of the Learned CIT(A) to have not discussed whatever evidence was on record. The paper book filed in this appeal with an undertaking that all these documents were submitted before CIT(E) indicate that disclosing of the activities in the form of Affidavit, financials and Memorandum of Association were submitted before Learned CIT(E). Thus the order of Learned CIT(E) cannot be sustained for failing to discuss as to what apart from the information submitted was desired and how the same was relevant to deny the approval sought. Thus the grounds raised are allowed. 5. In the light of aforesaid, both the appeals are allowed for statistical purposes. ITA Nos.6573 & 6574/Del/2019 South Asian Fraternity vs. CIT(E) 3 6. The issue on merit is restored to files of the Learned CIT(E) to decide the issue afresh on the basis of matter before him and reasoned findings. Needless to say that he will be at liberty to call for further information and make further enquiries from the assessee. Order pronounced in the open court on 14.06.2023 Sd/- Sd/- (ANIL CHATURVEDI) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 14.06.2023 Priti Yadav* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI