INCOME TAX ACT, 1961

Section 80G

Deduction under section 80G - Charitable trust - Application for approval rejected without considering reply of assessee -

Assessee-trust filed an application for approval under section 80G. CIT accordingly issued show cause notice to the assessee asking for certain information and in response to the same, the assessee filed detailed reply. CIT asked the assessee for further information with regard to use of the donation etc., and to provide documentary evidence in that regard and the assessee filed reply to the same. CIT further requested the assessee to submit reply/clarification /rebuttal with regard to the items claimed to be perused as activities, which did not get reflected in income and expenditure statement. However, as there was no response to the said query till passing of the order, the CIT considered it to be non-compliance on the part of the assessee and concluded that the assessee was not interested in pursuing the matter, therefore, application for approval under section 80G was rejected by him. Held: It was not in dispute that assessee had been granted registration under section 12AA. Thus, it was clear that the objects of the assessee were charitable in nature and assessee was doing some activities. However, on the last date of hearing, the CIT called for certain explanation and details with regard to the activities of the assessee, which according to the assessee were sent through email on 29-12-2017. However, the CIT passed the order prior to it on 28-12-2017. Thus, it would show that the assessee was interested in pursuing the matter and there was no justification for the CIT to hold that the assessee was not interested in pursuing the matter. Therefore, the issue required re-consideration at the level of the CIT because the documentary evidence or record had not been considered and appreciated by him. In view of the same, the issue was remanded to the CIT.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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