Case Number: ITA 3004/DEL/2022
Appellant: Pragyawan Foundation, Ghaziabad
Respondent: ITO, Exemption, Ghaziabad
Assessment Year: –
Case Filed On: 2022-12-23
Order Type: Final Tribunal Order
Date of Order: 2023-08-24
Pronounced On: 2023-08-24
In the case of Pragyawan Foundation vs. ITO, Exemption, Ghaziabad, the appellant, Pragyawan Foundation, challenged the denial of approval under Section 80G(5)(ii)(b)(8) of the Income-tax Act, 1961. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘F’ on 22nd August 2023, with the final order pronounced on 24th August 2023.
The appeal arose from the order passed by the Commissioner of Income-tax (Exemption), Lucknow on 27th October 2022. The appellant, represented by Shri Rohan Sogani, CA, argued that the CIT (Exemptions) had erred in denying the approval under Section 80G(5)(ii)(b)(8) and not providing adequate opportunity to the appellant to make requisite submissions.
During the proceedings, the counsel for the appellant contended that the application for registration under Section 80G(5)(iii) was filed on 29th April 2022 in Form No.10AB. The CIT (Exemptions) noted that several notices were issued for the appellant’s compliance, but the appellant did not respond. Consequently, the CIT (Exemptions) concluded that the charitable nature and genuineness of the activities could not be verified, and the application was treated as non-maintainable.
The appellant’s counsel argued that the notices provided were too short and requested another opportunity for the appellant to present the necessary documents and information.
The ITAT bench, comprising Shri Shamim Yahya (Accountant Member) and Shri Yogesh Kumar US (Judicial Member), acknowledged the appellant’s request for additional time to comply with the notices. The tribunal decided to remit the issue back to the CIT (Exemptions) for reconsideration, ensuring the appellant is given an adequate opportunity to present their case.
The tribunal’s order stated: ‘In the interest of justice, we remit the issue to the file of CIT (Exemptions). The CIT (Exemptions) will consider the issue afresh after providing the appellant an opportunity of being heard.’
The appeal was allowed for statistical purposes, meaning the matter was sent back to the CIT (Exemptions) for reevaluation.
The ITAT’s decision highlights the importance of providing adequate opportunities for appellants to present their cases and the necessity for thorough verification of charitable activities before denying approvals under Section 80G of the Income-tax Act.
Order Pronounced: In the open court on 24th August 2023.
Bench: Shri Shamim Yahya, Accountant Member and Shri Yogesh Kumar US, Judicial Member
Copy forwarded to:
Date of Hearing: 22nd August 2023
Date of Order: 24th August 2023
Pragyawan Foundation vs. ITO, Exemption, Appeal under Section 80G for Approval, 2023
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