2022 (12) TMI 544 - AT - Income Tax

Exemption u/s 11 - renewal of exemption u/s 80G - exemption denied as assessee filed incomplete Form No. 10G and failed to furnish the required documents as prescribed under Rule 11AA(2) - HELD THAT - The case of the Assessee Trust that it were being enjoying exemption u/s 12AA of the Act for long time and also granted exemption u/s 80G(5) of the Act between 01.04.1998 to 31.03.2001. In order to make the renewal of exemption under Section 80G, the assessee filed incomplete Form No. 10G and failed to furnish the required documents as prescribed under Rule 11AA(2) of the Rules. We, therefore, deem it fit to restore the matter back to the file of the Ld. CIT(E) to reconsider the application filed by the assessee, provided the assessee submits all the required and relevant documents as prescribed under Form 10G and then pass order in accordance with law. Needless to say the assessee shall cooperate with the CIT(E) in the de novo proceedings. With this observation we dispose of the appeal and treat the same as allowed for statistical purpose.

Summary

Issues:
- Rejection of exemption under Section 80G(5) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemptions), Ahmedabad.

Analysis:
1. Background and Facts:
The appellant, an Education Trust, applied for registration under Section 80G(5) of the Income Tax Act after already being registered under Section 12AA. The Commissioner of Income Tax (Exemptions), Ahmedabad, rejected the exemption under Section 80G(5) citing non-compliance with Rule 11AA(2) and incomplete submission of Form No. 10G, along with missing audited accounts and registration copies for the relevant financial year.

2. Grounds of Appeal:
The appellant raised several grounds challenging the rejection of exemption under Section 80G(5). These included contentions regarding the failure to consider the appellant's detailed reply, fulfillment of conditions for approval, relevance of trust activities, and the legal aspects of the provisions of Section 80G(5).

3. Appellant's Submission:
During the appeal, the appellant did not appear in person but submitted a written statement emphasizing their existing exemption under Section 12AA and past exemption under Section 80G(5) from 01.04.1998 to 31.03.2001. They requested the matter to be remanded to the Commissioner for a fresh decision based on the relevant documents and details.

4. Revenue's Response:
The Commissioner of Income Tax Department had no serious objections to the appellant's plea but emphasized the need for the appellant to provide all necessary details for the exemption under Section 80G(5).

5. Judgment and Decision:
After considering the facts and submissions, the Appellate Tribunal decided to remand the matter back to the Commissioner for reconsideration. The Tribunal instructed the appellant to submit all required and relevant documents as per Form 10G and Rule 11AA(2) for the Commissioner to pass a new order. The Tribunal emphasized the appellant's cooperation in the process. The appeal was disposed of, allowing it for statistical purposes.

6. Conclusion:
The appeal was allowed for statistical purposes, and the matter was remanded back to the Commissioner for a fresh decision based on the submission of all necessary documents as required under the law. The Tribunal highlighted the importance of compliance and cooperation from the appellant in the reevaluation process.