2022 (6) TMI 691 - AT - Income Tax

Deduction u/s 80G - applicant has filed an application in Form No. 10G dated 04.03.2020 for seeking approval under section 80G(5)(vi) delayed - critical times during the Pandemic period - Assessee could not produce any documentary evidence in support of the charitable activities carried out by the assessee trust - HELD THAT - Keeping in view the circumstances faced by the assessee society during the Covid-19 pandemic which prevented the assessee society to submit the necessary documents before the ld. CIT (Exemptions) for approval under section 80G(5)(vi) we are of the considered view that it will appropriate and in the interest of justice to remand the matter back to the file of the ld. CIT (Exemptions) to decide the matter afresh after affording a reasonable opportunity to the assessee society to submit documents as desired by him.

Issues:
1. Delay in filing appeals due to Covid-19 pandemic.
2. Condonation of delay in filing appeals.
3. Approval under section 80G(5)(vi) of the I.T. Act, 1961.
4. Failure to produce necessary documents for approval.
5. Remand of the matter for fresh consideration.

Delay in Filing Appeals Due to Covid-19 Pandemic:
The appeals filed by the assessee against the order of the ld. CIT (Exemptions) were delayed by 288 days and 364 days respectively. The assessee attributed the delay to the challenges posed by the Covid-19 pandemic, which hindered the timely submission of documents. The reasons cited by the assessee included difficulties faced by the society in providing services to the elderly during the critical pandemic period.

Condonation of Delay in Filing Appeals:
Considering the impact of the pandemic and in the interest of natural justice, the Tribunal decided to condone the delay in filing the appeals. The delay of 288 days in one appeal was condoned, and the appeal was then decided on its merits.

Approval under Section 80G(5)(vi) of the I.T. Act, 1961:
The assessee had applied for approval under section 80G(5)(vi) of the I.T. Act, 1961. However, the ld. CIT (Exemptions) dismissed the application as the necessary documents supporting the charitable activities were not produced by the assessee within the stipulated timeframe. The Tribunal acknowledged the challenges faced by the assessee due to the pandemic, leading to the inability to submit the required documents.

Failure to Produce Necessary Documents for Approval:
The Tribunal noted that despite being asked to provide specific documents and certificates, the assessee failed to produce the required evidence of charitable activities. The Tribunal recognized the impact of the pandemic on the society's operations, leading to the inability to meet the submission deadlines.

Remand of the Matter for Fresh Consideration:
In light of the circumstances faced by the assessee society during the pandemic, the Tribunal deemed it appropriate to remand the matter back to the ld. CIT (Exemptions) for a fresh decision. The Tribunal directed the ld. CIT (Exemptions) to reevaluate the case after affording the assessee a reasonable opportunity to submit the necessary documents for approval.

Conclusion:
The Tribunal allowed the appeal in ITA No. 95/JP/2021 for statistical purposes, having remanded the matter back to the ld. CIT (Exemptions) for fresh consideration. The subsequent appeal in ITA No. 254/JP/2021 was dismissed as it became infructuous following the decision on the first appeal.

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