TaxTMI 
TaxTMI 
2024 (10) TMI 641
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....ssessee has filed a condonation application along with an affidavit explaining the reasons for such delay. After considering the contents of the condonation application filed along with affidavit and after hearing the Ld. DR, the delay in filing of the appeal is condoned and the appeal is admitted for adjudication. 3. The grounds raised by the assessee are as under: 1. The ld CIT Exemption erred in law and on facts in rejection of application for registration u/s 12AB rws 12A(1)(ac)(vi) without affording opportunity of being heard as required under the law. 2. The appellant prays for opportunity so as to explain its case. 4. Facts of the case in brief, are that the assessee filed an application in Form No.10AB under ....
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....n as-much-as the annexure/schedules for the FY 2021-22. You are also requested to provide the provisional financial statement for the FY 2022-23, giving the details of the assets, liabilities etc and the financial position as on date." 5. In response to the same, the assessee furnished certain details. The CIT(Exemption) noted that the assessee has shown to have paid commission of Rs. 40.69 lacs for which no clarification / supporting documents were provided. Therefore, another notice was sent to the assessee on 21.07.2023 requesting the assessee to submit as under: "A commission payment of 40.69 Lakhs (in notice wrongly mentioned as 30.69 Lakhs) has been made for which details such as persons to whom amount paid, nature of paym....
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....rovisions of section 2(24) of the Act, the term 'voluntary', etc. Rejecting the various explanations given by the assessee, the CIT(Exemption) held that the genuineness of the donations are doubtful since the copies of the receipts were not furnished and the list of donors furnished by the assessee does not contain full name and address of the donors and only first name of the persons has been recorded. Since he was of the opinion that the assessee could not satisfy about the activities of the assessee being charitable in nature and the genuineness of the activities are doubtful and the activities of the assessee company appear to be clandestine in nature, he rejected the application field by the assessee and also cancelled the provisional ....
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....e Act on the ground that the assessee has paid huge commission of Rs. 40,69,992/- to three persons which amounts to nearly 12% of the total donations of Rs. 3.40 crores. Further, in addition to the commission, the assessee has also shown remuneration to the directors of Rs. 12.36 lacs and salary of Rs. 106.38 lacs. Further, the assessee has made large payments for purchase of food grain and all the purchases were made from one 'Shanti Trading Co.' Similarly, the donors list furnished by the assessee does not contain full name and address of the donors but only the first name of the persons has been recorded. Further, the copies of receipts were not furnished for verification. In view of all these, the CIT(Exemption) came to the conclusion t....