The Income Tax Appellate Tribunal (ITAT), Allahabad bench directed the production of documentary evidence in support of medical services provided to the poor and the rural areas so as to avail exemption.
The assessee, Krishna Shiksha Sewa Sansthan has filed the application in Form No. 10A. However, the Commissioner (Exemption) has issued notice to the assessee for giving an opportunity of hearing on 2nd January 2020. In response to the said notice, the assessee filed an application for seeking adjournment of hearing which was re-fixed to 23.01.2020. He has pointed out that on the date of hearing, he appeared before the CIT (Exemption) and filed books of account and other details.
The CIT (Exemption) has asked the assessee to submit the details of donations received in the Financial Year 2017-18 and 2016-17. In compliance to the said directions, the assessee filed the written submissions along with details of the donations and confirmations of the local donors itself. He has referred to the written submissions as well as the details filed by the assessee and submitted that due to paucity of time, the assessee could not obtain the confirmation from outside donors.
The assessee contended that the observations of the Commissioner (Exemption) that the assessee did not submit any confirmation of donation is contrary to the record. Further, the Commissioner has also given the reasons for rejecting the application that the assessee has not filed any evidence in support of the claim that it has organized medical camp for providing the medical facilities and supporting bills of expenditure to substantiate the activity carried out by the assessee to attain the objects of the assessee trust.
On the other hand, the CIT has submitted that the CIT (Exemption) has given various reasons for rejecting the application and the absence of the confirmation is only one part of the reasons and not the sole basis of rejection. He has referred to para 2 and 3 of the impugned order and submitted that apart from the non furnishing of the confirmation the Commissioner (Exemption) has observed that the assessee society stated to have provided medical services to the poor in the rural areas by organizing medical camp and running medical clinic however, in support of the said claim the assessee has not submitted or produced any evidence like place of camp, date of camp, beneficiary of camp etc. nor the assessee has provided any photographs, bills of expenditure to substantiate the claim of activity as claimed by the assessee.
The coram of Ramit Kochar and Vijay Pal Rao set aside the impugned order of the Commissioner (Exemption) and remit the matter to the record of the Commissioner (Exemption) for deciding the same afresh after giving one more opportunity to the assessee to submit the complete confirmation of donations as well as other documentary evidence in support of carrying out the activities of providing medical services to the poor in the rural areas.
The ITAT while allowing the appeal directed the assessee to produce the complete confirmation of donations as desired by the Commissioner (E) and also produce the documentary evidence in support of the medical services provided to the poor and the rural areas.
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