TaxTMI 
TaxTMI 
2020 (3) TMI 122
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....d 10G on 29th January, 2019 seeking registration u/s.12AA and exemption u/s.80G of the Income Tax Act, 1961. 3. The Ld. CIT(E) issued a questionnaire dated 19.02.2019 requesting it to submit certain documents in support of its claim. The assessee filed part details. Again a letter dated 13.06.2019 was sent to the assessee asking him to file the details on 21.06.2019 as called for earlier. However, since none appeared on that date another show cause notice dated 27.06.2019 was issued to the assessee asking him to furnish the following details by 08.07.2019. i. Please provide the financial statement i.e. balance sheet and income & expenditure a/c for the F.Y. 2018-19 (01.04.2018 to 31.03.2019) alongwith list of donors, name, address, PAN ....
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....shown excess of income over expenditure of Rs. 81,04,539/- which is more than 15% of the total income. He noted that assessee has received annual fee of Rs. 35 lacs and membership fee of Rs. 59 lacs both totaling to Rs. 94 lacs out of which an amount of Rs. 8,00,000/- has been received from M/s. Hazelwood Laboratories Pvt. Ltd.. Further Rs. 8,00,000/-from M/s. Parag Milk Foods and Rs. 8,00,000/- from M/s. United Spirits Ltd. TDS of Rs. 16000/- has been deducted u/s. 194 by M/s. Hazelwood Private Limited and TDS of Rs. 80,000/- each has been deducted by M/s. Parag Milk Foods Limited and United Spirits Limited. He, therefore, held that the amount of Rs. 24 lacs received from M/s. Parag Milk Foods Private Limited and M/s. Hazelwood Private Lim....
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.....1 That on the facts and circumstances of the case and in law, the impugned order having been passed without affording reasonable opportunity of being heard to the appellant, is illegal and bad in law. 1.2 That the CIT(E) erred in denying registration under section 12AAof the Act on illegal and untenable grounds, without appreciating that the scope of registration proceedings was limited to examining the objects, more so, without doubting the charitable objects of the appellant. 1.3 That the CIT(E) erred on facts and in law in denying registration under section 12AA of the Act on the ground that the appellant failed to file necessary details/ evidences to establish genuineness of the charitable activities carried on by the appellant. ....
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.....2019 (impugned order) [consolidated order for denying registration under section 12AA and 80G]. 1.1 That on the facts and circumstances of the case and in law, the impugned order having been passed without affording reasonable opportunity of being heard to the appellant, is illegal and bad in law. 1.2 That the CIT(E) erred in denying registration under section 80G(5)/ 12AAof the Act on illegal and untenable grounds, without appreciating that the scope of registration proceedings was limited to examining the objects, more so, without doubting the charitable objects of the appellant. 1.3 That the CIT(E) erred on facts and in law in denying registration under section 80G(5) of the Act on the ground that the appellant failed to file nece....
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....he Ld. CIT(E) refused to grant registration 12A/12AA on the ground that the assessee failed to substantiate that the objects of the society / trust are charitable in nature and the activities of the society/ trust are genuine, since the assessee failed to produce the requisite details called for by him. We find the assessee in the grounds of appeal has specifically taken grounds that the CIT(E) has not granted him reasonable opportunity of being heard. Considering the totality of the facts of the case and in the interest of justice we deem it proper to restore the issue to the file of the CIT(E) with a direction to grant one final opportunity to the assessee to substantiate the charitable activity of the society for grant of registration 12....