SAI SHEERA,SECUNDERABAD V. CIT (EXEMPTION), HYDERABAD

ITA 1413/HYD/2024

AI Insights

The case involves Sai Sheera Secunderabad, the appellant, who appealed against the decision of the CIT (Exemptions), Hyderabad, which rejected their application for approval under section 80G(5) of the Income Tax Act for the assessment year 2022-23. The rejection was based on the grounds of non-compliance with a notice dated 4/10/2024. The appellant argued that they had complied with earlier notices and that the non-compliance with the last notice was due to unavoidable circumstances. The CIT (Exemptions) had not considered the responses to the earlier notices while rejecting the application. The Tribunal found the rejection arbitrary and unjustified, leading to the remand of the case for further consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708345 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SNSR CHINMAI
• Keywords: Set aside
• Section: 80G

Judgement Text

" ITA No 1413 of 2024 Sai Sheera Secunderabad Page 1 of 5 आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘DB-B‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.1413/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2022-23) Sai Sheera Secunderabad PAN:AASTS5041D Vs. CIT (Exemptions) Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Advocate SNSR Chinmai रधजस् व द्वधरध/Revenue by:: Shri Narender Kumar Naik, CIT(DR) सुिवधई की तधरीख/Date of hearing: 09/07/2025 घोर्णध की तधरीख/Pronouncement: 09/07/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal filed by the assessee is directed against the order dated, 22/10/2024 of the learned CIT (Exemptions), for the A.Y.2022-23 whereby the application of the assessee for approval u/s 80G(5) of the Act is rejected for non-compliance. 2. The assessee has raised the following grounds of appeal: ITA No 1413 of 2024 Sai Sheera Secunderabad Page 2 of 5 3. The learned AR of the assessee has submitted that the assessee has responded to all the notices issued by the CIT (Exemptions) except the last notice and consequently, the CIT (Exemptions) has rejected the application on the ground of non- compliance. He submitted that the assessee filed all the relevant details and documents in response to the earlier notices dated 8/6/2024 and 16/8/2024. Only, the notice dated 4/10/2024 could not be responded to, due to unavoidable circumstances. Thus, the learned AR has submitted that once the assessee has furnished all the requisite details and documents to satisfy the CIT (Exemptions) that the assessee has carried out charitable activities and eligible for approval u/s 80G, then the rejection of the application on technical reason is not justified. He has thus pleaded that the impugned order of the CIT (Exemptions) should ITA No 1413 of 2024 Sai Sheera Secunderabad Page 3 of 5 be set aside and the matter may be remanded to the record of the CIT (Exemptions) with direction that the assessee be granted approval u/s 80G of the I.T. Act. 4. On the other hand, the learned DR has submitted that the CIT (Exemptions) has recorded the fact that there is no compliance from the assessee to the notice issued and therefore, the requisite information was not furnished by the assessee. When the mandatory information was not produced before the CIT (Exemptions), then there was no occasion for satisfying himself by the CIT (Exemptions) that the assessee has carried out charitable activities and eligible for approval u/s 80G of the Act. He has relied upon the impugned order of the CIT (Exemptions). 5. We have considered the rival submissions as well as carefully perused the impugned order of the CIT (Exemptions). The CIT (Exemptions) has issued 3 notices dated 8/6/2024, 16/8/2024 and 4/10/2024. In response to the earlier notices, the assessee has duly filed the replies to the CIT (Exemptions) as placed at page 102 to 103 as well as 106 and 10s7 of the paper book. The CIT (Exemptions) finally rejected the application of the assessee by recording the reasons as under: “3. There is no compliance from the assessee so far. In light of the above facts, as the application in Form 10AB is to be decided in time bound manner and non-submission of mandatory information, the present application in Form 10AB for registration u/s 80G is infructuous and herewith rejected as non- maintainable”. ITA No 1413 of 2024 Sai Sheera Secunderabad Page 4 of 5 6. Thus, it is clear that when the record filed by the assessee in response to the earlier notices was available before the CIT (Exemptions), then the rejection of the application for non- compliance of the 3rd notice is highly arbitrary and unjustified. The CIT (Exemptions) ought to have given one more opportunity to the assessee to furnish the requisite details and information, if any, was not furnished earlier in response to the 2 notices. There is no discussion in the impugned order about the reply, details and documents filed by the assessee. Thus, in the facts and circumstances of the case, the impugned order of the CIT (Exemptions) is set aside, and the matter is remanded to the record of the CIT (Exemptions) for reconsideration of the application of the assessee after giving one more opportunity of hearing to the assessee to furnish the requisite details and information. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on the conclusion of hearing i.e. 9th July, 2025. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 9th July, 2025 Vinodan/sps ITA No 1413 of 2024 Sai Sheera Secunderabad Page 5 of 5 Copy to: S.No Addresses 1 SAI SHEERA, H.No.3-9/59 Syed Jalal Garden, West Maredapally Secunderabad 500026 Telangana 2 CIT (Exemptions) Hyderabad 3 Pr. CIT – Exemptions, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "