Appeal granted for exemption & approval under Income Tax Act after ITAT directs reevaluation

The appeal arose from the rejection of applications for exemption under Section 12AA(1)(b)(ii) and approval under Section 80G(5)(vi) of the Income Tax Act, 1961 by the Ld. CIT(E) Ahmedabad. Despite the appellant's failure to provide necessary details and documents, the ITAT set aside the rejection orders and directed the Ld. CIT(E) to reconsider the matter, allowing the appellant to present all evidence to prevent a miscarriage of justice. Both appeals were ultimately allowed for statistical purposes.

---

---

Issues:
1. Rejection of application for exemption under Section 12AA(1)(b)(ii) of the Income Tax Act, 1961.
2. Rejection of application for approval under Section 80G(5)(vi) of the Income Tax Act, 1961.

Issue 1: Rejection of application for exemption under Section 12AA(1)(b)(ii) of the Income Tax Act, 1961:
The appeal arose from the orders passed by the Ld. CIT(E) Ahmedabad rejecting the application for exemption under Section 12AA of the Act. The appellant failed to provide necessary details and documents despite multiple opportunities. The Ld. CIT(Exemption) rejected the application as the genuineness of the trust's activities could not be verified due to lack of relevant documents. During the appeal hearing, the appellant's counsel argued that the documents were submitted on time but were not considered by the Ld. CIT(E). The ITAT observed that although all directed documents were not submitted, the Ld. CIT(E) failed to consider the documents already provided. To prevent a miscarriage of justice, the ITAT set aside the order and directed the Ld. CIT(E) to reconsider the matter, giving the appellant an opportunity to present all evidence. The appeal was allowed for statistical purposes.

Issue 2: Rejection of application for approval under Section 80G(5)(vi) of the Income Tax Act, 1961:
The order rejecting the application for approval under Section 80G(5)(vi) of the Act was challenged, which was linked to the application under Section 12AA being reconsidered. The ITAT directed the CIT(Exemption) to pass orders in accordance with the reconsideration of the Section 12AA application. Ultimately, both appeals of the assessee were allowed for statistical purposes. The order was pronounced in Open Court on 02/03/2021.

---

---