2022 (12) TMI 1086 - AT - Income Tax

ITAT grants Trust appeal, remits for 80G approval. Cooperation key.

The Appellate Tribunal ITAT VISAKHAPATNAM allowed the appeals of the assessee, a Trust with charitable objects, setting aside the rejection of the ... Approval u/s 80G(5) - application for registration in Form No.10AB rejected on non submission of mandatory information - HELD THAT:- It is apparent from the records that the assessee has submitted most of the information asked for in the notice of hearing such as PAN, Society Registration Certificate, Bye Laws, Details of Members of the Society, copies of income tax returns, financial statements at the time of submission of application for registration u/s 80G itself before the Ld.CIT(E). On perusal of the written submissions filed in the paper book and the medical reports submitted by the assessee, we find that it is a fit case to grant one more opportunity of being heard to the assessee to furnish all the details / information sought by the Ld.CIT(E) - We set aside the order passed by the Ld.CIT(E) and remit the matter back to the file of the Ld.CIT(E) with a direction to grant one more opportunity of being heard to the assessee. Appeals of the assessee are allowed for statistical purpose. Issues:1. Appeal against rejection of application seeking approval u/s 80G(5) of the Income Tax Act, 1961.2. Failure to furnish mandatory information and documentary evidence.3. Request for one more opportunity of being heard before the Ld.CIT(E).Issue 1: Appeal against rejection of application seeking approval u/s 80G(5) of the Income Tax Act, 1961.The assessee, a Trust with charitable objects, filed an e-application seeking approval u/s 80G(5) of the Income Tax Act. The Ld.CIT(E) rejected the application for non-submission of mandatory information despite the assessee submitting most of the required information at the time of application. The Tribunal found it appropriate to grant one more opportunity to the assessee to furnish the remaining details. The order of the Ld.CIT(E) was set aside, and the matter was remitted back to grant the assessee a chance to be heard and provide the necessary information.Issue 2: Failure to furnish mandatory information and documentary evidence.The Ld.CIT(E) issued notices requesting specific information and documents, but the assessee failed to comply, leading to the rejection of the application seeking approval u/s 80G(5). The assessee, in its appeal, explained that the failure to respond was due to the ill health of a key member who was hospitalized. The Tribunal considered the medical reports and submissions, noting that some details were already submitted with the application. Consequently, the Tribunal directed the assessee to cooperate with the Ld.CIT(E) and provide all relevant details as required.Issue 3: Request for one more opportunity of being heard before the Ld.CIT(E).The assessee, through written submissions, requested another chance to be heard before the Ld.CIT(E) due to the circumstances surrounding the failure to provide the necessary information. The Tribunal, after hearing both parties and reviewing the material, decided in favor of granting the assessee one more opportunity to present the required details. It emphasized the importance of the assessee's cooperation in furnishing all relevant information to the Ld.CIT(E) without fail.In conclusion, the Appellate Tribunal ITAT VISAKHAPATNAM allowed the appeals of the assessee for statistical purposes, setting aside the order of rejection and directing the assessee to cooperate with the authorities to provide the outstanding information as required by the Ld.CIT(E).