Rejection to Claim of Exemption u/s 80G of Income Tax Act by Charitable Trust due to Failure to Respond to Notice Issued: ITAT restores matter to CIT(E) for Re-adjudication [Read Order]

The Delhi Bench of Income tax Appellate Tribunal (ITAT) held that assessee has sufficient cause in not responding to the notices issued by the Commissioner of Income Tax (Exemption) [CIT(E)], thus restored the matter to the files of CIT(E) for fresh adjudication.

The assessee Sohum Charitable Trust is a public charitable trust created with the charitable objects of giving relief to the poor, providing education, providing medical relief, preaching yoga as general welfare activities. The assessee has applied for exemption of the trust under Section 80G of the Income Tax Act,1961 in Form No. 10AB through e filing portal.

The CIT(E), Chandigarh had issued notice seeking further details from the assessee for grant of exemption under Section 80G of the Income Tax Act. The assessee did not check the income tax e-filing portal and accordingly could not respond to the notice issued by the CIT(E).

The CIT(E) pointed out that since no response was made by the assessee by furnishing requisite details that were called for, he has no other option but to proceed to reject the claim of exemption under Section 80G of the Income Tax Act by passing an order under Section 10AD of the Income Tax Act

Aggrieved by the order the assessee filed an appeal before the Tribunal.

The Bench comprising of M. Balaganesh, Accountant Member and Anubhav Sharma, Judicial Member observed that main grievance of the assessee is that the notice calling for certain details issued by the CIT(E) were uploaded only in the income tax e filing portal and the same were not sent to the assessee by email which is mandate of Section 282 of the Income Tax Act.

The Tribunal held that assessee has sufficient cause in not responding to the notices issued by the CIT(E) and accordingly feel that assessee should be given one more effective opportunity to furnish the requisite details that were called for by the  CIT(E).

Accordingly, the case was restored to the file of the CIT(E) for de novo adjudication in accordance with the law.

Hence the appeal of the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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