Case Number: ITA 5440/DEL/2019
Appellant: Sushruta Education Trust, New Delhi
Respondent: CIT(Exemption), New Delhi
Assessment Year: 2019-20
Case Filed On: 2019-06-19
Order Type: Final Tribunal Order
Date of Order: 2019-10-17
Pronounced On: 2019-10-17
The Sushruta Education Trust, based in New Delhi, filed for registration under section 12AA and exemption under section 80G of the Income Tax Act for the assessment year 2019-20. However, the CIT(Exemption) rejected their applications due to non-compliance with the requirements set forth by the Income Tax Department.
The appellant, Sushruta Education Trust, contended that their applications for registration under section 12AA and exemption under section 80G were unjustly rejected by the CIT(Exemption). The primary reason cited for the rejection was the non-compliance with the letters issued by the CIT(Exemption) on 16.04.2019 and 07.05.2019. The trust had submitted partial details on 04.01.2019 but failed to provide complete responses to subsequent notices.
The case was presented before the Delhi Bench ‘G’ of the Income Tax Appellate Tribunal (ITAT), comprising Sh. Amit Shukla, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member. The hearing took place on 29.08.2019, and the order was pronounced on 17.10.2019.
The appellant’s representative, Sh. Rakesh Jain, argued that the rejection of their applications for exemption at the initial stage was unwarranted. He emphasized that the trust should be given an opportunity to submit the necessary details and comply with the requirements of the Income Tax Department. The appellant requested the tribunal to remand the case to the CIT(Exemption) for a fresh examination of their applications.
The respondent, represented by Sh. S. S. Rana, CIT DR, objected to the remand of the case. The respondent argued that the appellant had ample time to comply with the notices issued by the CIT(Exemption) and failed to do so. The rejection of the applications was justified due to the appellant’s non-compliance.
After reviewing the case records and hearing the arguments, the tribunal held that the interests of justice would be best served by remanding the matter to the CIT(Exemption) for a fresh examination. The tribunal noted that the appellant should be given an opportunity to comply with the notices and provide all the necessary details promptly.
The tribunal directed the appellant to comply with the notices issued by the CIT(Exemption) without seeking unnecessary adjournments. The CIT(Exemption) was instructed to re-examine the applications for registration under section 12AA and exemption under section 80G in accordance with the provisions of the Income Tax Act.
The case between Sushruta Education Trust, New Delhi, and CIT(Exemption), New Delhi, underscores the importance of timely compliance with the requirements set by the Income Tax Department. The tribunal’s decision to remand the case for fresh examination highlights the necessity for appellants to respond promptly to notices and provide complete details to support their applications for exemptions and registrations.
In conclusion, the appeal filed by Sushruta Education Trust was allowed for statistical purposes, and the matter was remanded to the CIT(Exemption) for a fresh decision. This case serves as a reminder for all entities seeking tax exemptions and registrations to diligently adhere to compliance requirements to avoid rejections and legal disputes.
Order pronounced in the Open Court on 17/10/2019.
Signed:
(Amit Shukla) Judicial Member
(Dr. B. R. R. Kumar) Accountant Member
Copy forwarded to:
Assistant Registrar, ITAT, Delhi
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