Tribunal remands matter to CIT (E) for further examination, directs appellant to provide evidence.

The tribunal remanded the matter back to the CIT (E) for further examination, directing the appellant to provide evidence regarding travel arrangements and demonstrate no benefit or profit was gained. The CIT (E) was instructed to reevaluate the issues after affording a fair opportunity for the appellant to present their case. Both appeals by the assessee were treated as allowed for statistical purposes, with the order pronounced on 12.02.2021.

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Issues:
Denial of registration u/s. 12 AA and u/s. 80 G of the Act based on charitable activities and benefits provided to related parties.

Analysis:
The judgment involves two separate appeals by the assessee against the consolidated order of CIT (Exemption) denying registration u/s. 12 AA and u/s. 80 G of the Act. The counsel for the assessee argued that the denial was erroneous, emphasizing the charitable nature of the activities. On the other hand, the DR contended that the appellant provided benefits to related parties under the guise of charitable activities. The DR highlighted instances where donors accompanied visually impaired individuals on tours, some of whom were related to the settlor of the trust. The counsel defended the actions, stating that volunteers were necessary to assist visually impaired persons during the tours and that the arrangements were made at the best price without benefiting the appellant.

Upon careful consideration, the tribunal acknowledged the concerns raised by both sides. While recognizing the need for volunteers to assist visually impaired individuals, the tribunal found discrepancies in the explanations provided by the appellant. The tribunal noted inconsistencies in the number of visually impaired persons on the trip to Dubai and the lack of clarity regarding the involvement of donors in the travel arrangements. Consequently, in the interest of justice, the tribunal remanded the matter back to the CIT (E) for further examination. The appellant was directed to provide evidence regarding the travel arrangements and demonstrate that no benefit or profit was gained by the travel agency involved. The CIT (E) was instructed to reevaluate the issues after affording a fair opportunity for the appellant to present their case.

As a result, both appeals filed by the assessee were treated as allowed for statistical purposes, with the order pronounced in open court on 12.02.2021.

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