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2021 (7) TMI 627 - AT - Income TaxApproval to the appellant u/s 80G - non-production of original bills and vouchers for verification of the activities and for verification of expenses having being incurred for objective of the assessee society, non-production of details of donation as well confirmation in the cases where cash donations exceeded ₹ 2000/- as well non-production of details of charitable activities carried on by the assessee - Whether the activities of the appellant trust were not charitable in nature? - whether appellant was not sufficient to prove genuineness of activities and its objects ? - HELD THAT:- In the instant case before us, the assessee’s registration certificate had already expired on 23.04.2020 which could not be renewed by assessee in time ostensibly owing to spread of pandemic Covid 19 disease and the same was later renewed on 11.06.2021 with retrospective effect from 24.04.2020, which was after the ld. CIT(E) rejected the application for grant of approval u/s 80G the assessee has also not furnished details as were asked by CIT(E) in exercise of its powers u/s 80G(5) read with proviso of the 1961 Act and Rule 11AA of the 1962 Rules as the assessee did not co-operated with the Revenue and did not furnished original bills and vouchers to enable verification as to activities and also to verify whether the expenses were incurred for attainment of charitable objects of society , details of donations received and confirmation of cash donations exceeding ₹ 2000 received during last three year were also not furnished by assessee before ld. CIT(E) and also the assessee did not furnish evidence to enable ld. CIT(E) in support that activities carried out by assessee are charitable in nature. The aforesaid documents/evidences are also not furnished before us by the assessee , except that renewal of registration dated 11.06.2021 with retrospective effect from 23.04.2020 under Societies Registration Act, 1860 is filed for the first time before tribunal which is a fresh evidence filed for the first time before tribunal which as per ld. CIT-DR requires verification by department. We have already held that inquiry as contemplated u/s 80G(5) of the 1961 Act read with Rule 11AA of the 1962 Rules as to genuineness of the activities of the taxpayer institution is not an empty formality , more-so there is a time gap between grant of registration u/s 12AA in May 2019 and an application filed by assessee on 10.03.2020 with CIT(E) for grant of approval u/s 80G. In the fairness to both the parties and based on facts and circumstances of the case, we are inclined to set aside and restore application filed by assessee for grant of approval u/s 80G back to the file of ld. CIT(E) for consideration afresh of aforesaid assessee’s application on merits in accordance with law, as in our considered view it is a fit case of remand back to the file of ld. CIT(E) for fresh consideration of assessee’s application and our view is supported by Larger Bench judgment in the case of Commissioner of income tax (Exemption) Lucknow U.P v. Reham Foundation[2019 (1) TMI 1634 - ALLAHABAD HIGH COURT] The assessee is directed to appear before ld. CIT(E) and furnish all the relevant details/evidences in support of its application for approval u/s 80G of the 1961 Act, which will be decided by ld. CIT(E) on merits in accordance with law. Appeal of the assessee is allowed for statistical purposes.
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