SRI MARUTHI VIDYANIKETHAN,NALGONDA V. CIT (EXEMPTION), HYDERABAD

ITA 1392/HYD/2024

AI Insights

The case involves Sri Maruthi Vidyanikethan, an educational institution, which appealed against the order of the Commissioner of Income Tax (Exemption), Hyderabad, rejecting their application for approval under section 80G of the Income Tax Act, 1961. The rejection was primarily due to the non-response to a notice dated 04/10/2024, which the assessee claimed they could not respond to because they were unable to download the attachment due to a 'page not found' error. The Tribunal noted that the assessee had previously complied with two other notices and found that the assessee deserved another opportunity to provide the necessary information.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473245 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M.V. ANIL KUMAR
• Keywords: Set aside
• Section: 80G

Judgement Text

" ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 1 of 7 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.1392/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2025-26) Sri Maruthi Vidyanikethan NALGONDA PAN:AAOAS0169H Vs. Commissioner of Income Tax (Exemption) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri M.V. Anil Kumar, Advocate राज̾ व Ȫारा/Revenue by:: Shri B Bala Krishna, CIT(DR) सुनवाई की तारीख/Date of hearing: 10/03/2025 घोषणा की तारीख/Pronouncement: 12/03/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the assessee is directed against the order, dated 22/10/2024 of the learned CIT (Exemption), Hyderabad, for the A.Y.2025-26, whereby the application of the assessee in Form 10AB of the Act seeking approval u/s 80G was rejected. 2. The assessee has raised the following grounds of appeal: ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 2 of 7 3. The learned AR of the assessee has submitted that the assessee was granted registration u/s 12AB of the I.T. Act, 1961 vide order, dated 18/07/2024. Thereafter, the assessee filed ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 3 of 7 application in Form 10AB on 6/4/2024 for approval u/s 80G of the Act. The CIT (Exemption) issued notice, dated 8/6/2024 and 16/8/2024 calling for information from the assessee. The said two notices were duly complied with by the assessee with the replies along with specific information called for in the said notices. Thereafter, another notice dated 04/10/2024 was issued by the CIT (Exemption) which could not be responded before the impugned order passed by the CIT (Exemption), due to the reason that, the attachment to the email could not be downloaded and a message appeared on the screen that page not found. The learned AR of the assessee has referred to page Nos. 74 & 75 of the paper book and submitted that, the attachment to the email in PDF form could not be downloaded as per the message placed at page 75 of the paper book. Therefore, the assessee could not respond to the last notice issued by the CIT (Exemption). The learned AR of the assessee has thus, submitted that, when the assessee has already filed the requisite information and documents in response to the earlier 2 notices issued by the CIT (Exemption), then the rejection of application on the ground that, the assessee has not responded to the last notice is not justified. The learned AR of the ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 4 of 7 assessee has further stated that, the assessee is ready to produce all the requisite information and documents, if one more opportunity is given to the assessee. 4. On the other hand, the learned DR has submitted that the application in Form 10AB was filed by the assessee on 6/4/2024, therefore, the learned CIT (Exemption) had to pass the order before the expiry of limitation of six months. Since the assessee did not respond to the show-cause notice issued on 4/10/2024, therefore, the CIT (Exemption) had no option but to pass the impugned order to dismiss the application of the assessee. 5. We have considered the rival submission as well as relevant material available on record. The reasons given by the learned CIT (Exemption) for rejecting the application for approval u/s 80G are as under: ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 5 of 7 6. Thus, it is clear that the notices dated 8/6/2024 and 16/8/2024 issued by the learned CIT (Exemption) were duly complied with by the assessee by filing the detailed reply and specific information called for in those notices. However, the learned CIT (Exemption) issued the 3rd notice dated 4/10/2024 ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 6 of 7 calling for specific information which was not responded by the assessee and the reasons now explained by the learned AR of the assessee for non-compliance of the said notice and that the assessee could not download the said notice attached to the email. It is pertinent to note that the assessee was earlier granted provisional approval u/s 80G of the Act and also granted a regular registration u/s 12AB of the I.T. Act, 1961 for a period of 5 years, vide order dated 18/07/2024. The registration already granted u/s 12AB is a relevant fact to be considered at the time of approval u/section.80G(5) of the Act. However, the learned CIT (Exemption) has rejected the application only on the ground of non-compliance of the last notice dated 4/10/2024. Once the assessee has duly complied with the earlier 2 notices, then the assessee ought to have been given one more opportunity for furnishing the requisite details and information. Since it was a case of time barring, therefore, the learned CIT (Exemption) passed the impugned order without giving further opportunity to the assessee. Accordingly, in the facts and circumstances of the case, we are of the considered opinion that the assessee deserves one more opportunity to furnish the relevant details and ITA No 1392 of 2024 Sri Maruthi Vidyanikethan Page 7 of 7 information for the consideration of the learned CIT (Exemption). Hence, the impugned order is set aside and the matter is remanded to the record of the learned CIT (Exemption) for fresh consideration after giving an appropriate opportunity 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 12.03.2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 12th March, 2025 Vinodan/sps Copy to: S.No Addresses 1 Sri Maruthi Vidyanikethan, Near Industrial Estate, Shanthi Nagar Industrial Estate, Nalgonda 508213, Nalgonda 2 CIT (Exemption), Hyderabad 3 Pr. CIT – (Exemption) Hyderabad 4 DR, ITAT Hyderabad-A Bench, Hyderabad. 5 Guard File By Order "