TMI Blog2024 (3) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. Violation of FCRA provisions - As per order of Ld. CIT(E) certain documents regarding funds received by the assessee, which were not provided by the assessee before the Ld. CIT(E), the assessee was found to be on default and society is indulged in convincing illiterate and Economically Weaker Section for conversion of their religion in the nearby villages - Rejection on the basis of the report of the inspector and ITO(E), which was apparently not confronted to the assessee however, the same was one of the basis for rejection of the application of the assessee. Anything relied upon by the revenue authorities in order to arrive at any adverse inference against the assessee and the same is not even confronted to the assessee to show cause or to explain about, such action of the revenue authorities is not permissible under the settled principle of law which is against the principle of natural justice. Thus as assessee had not submitted certain detail sought by the Ld. CIT(E) and the Ld. CIT(E) also had not show caused the assessee regarding the information pertaining to dubious activities of the assessee association on the basis of inspectors report without confronting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete detail documents regarding funding of the trust which was not rightly looked into. 6. For that other grounds in detail will be argued at the time of hearing. 3. The brief facts of the case culled out from the order of Ld. CIT(E) are that the assessee had applied in form No.10AB for registration u/s 80G(5) vide application dated 20.06.2022 under the new provisions of Income Tax Act, 1961. Opportunities have been granted to the assessee to submit various documents / details to process the said application and to verify the objects and activities of the assessee by the Ld. CIT(E), after deliberation the application of the assessee was rejected by the Ld. CIT(E) on following grounds: (i) The name of the assessee organization as per document submitted was Asha Association, Surguja, whereas the name in FCRA registration, registration certificate of society, old registration u/s 12AA, audit report and bank accounts was mentioned as Asha Association in Surguja for Human Advancement. The infirmity pointed out by the Ld. CIT(E) is, that the name of the assessee is not matching with the other documents of the society. (ii) The second reason for denial was on account of violation of FCR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 76 of PB, relevant findings at PN 71 to 73, para no. 4 6. - Dignity Education Society vs CIT in ITA no. 31/RPR/2019 dated 09.06.2022, relevant findings at para no. 13. 4. Memorandum of association placed at page no. 39 to 50 of P B. Objects at page no. 40 of P B. No finding that objects are not charitable. 5. Regarding name i) Assessee is registered societies registration act since year 1992. Registration certificate is at PN 39 of PB. ii) Name in PAN is different due to some clerical mistake. As when this fact came to surface, assessee applied for PAN correction on 19.03.2021 (PN 54 of P B) which is still under process at NSDL. The assessee applied for correction again on 17.1 1.2022 (PN 57 of PB) as the earlier status was-net application was not processed since so long. Same was informed to Ld. CIT(E) vide letter dt. 23.1 1.2022, PN 8 of PB. iii) Assessment order of A. Y. 201 1-12 placed at PN 13 14 of PB passed in name of assessee wherein name PAN of assessee are mentioned which itself proves that there is no mismatch and there is no separate entity named as Asha Association Surguja 6. Regarding alleged violation of sec. 7 17 of FCRA i) Amount of Rs. 45,082/- received from Cari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's request for 80G registration, same has not been withdrawn even after the various allegations as referred to (supra) based on which the application of the assessee for 80G registration was rejected. It is the submission that registration u/s 12AA is granted for examining genuineness of activities of the trust and registration granted has not been revoked or cancelled, therefore, the approval u/s 80G cannot be rejected. Ld. AR relied upon various case laws as referred to (supra) in the synopsis which is extracted herein above. 8. It is further submitted that there is no finding of the Ld. CIT(E) qua the objects of the associations that such objects are not charitable in nature. Regarding change in name of the assessee association, it was the pleading that the assessee society is registered under the Society Registration Act since year 1992, the name in the PAN data is different due to some clerical mistake, for which as and when this fact come to surface the assessee had applied for PAN correction on 19.03.2021 which is still process at NSDL. Assessee has further applied for correction again on 17.11.2022 and the same was informed to Ld. CIT(E) vide letter dated 23.11.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee association for which the assessee association has already taken necessary suo moto steps for correction in the name of the assessee association in the PAN data vide their application dated 19.03.2021 i.e. before the date of their application for registration u/s 80G(5) therefore, the bonafide of the assessee association cannot be doubted and the difference in name of the association shall be treated as only inadvertent mistake on the part of the assessee. Regarding violation of FCRA the assessee has furnished certain explanations, however as per order of Ld. CIT(E) certain documents regarding funds received by the assessee, which were not provided by the assessee before the Ld. CIT(E), the assessee was found to be on default. Apropos, the allegation of the revenue stating that the assessee society is indulged in dubious activities of convincing the illiterate and Economically Weaker Section for conversion of religion in the nearby villages, on the basis of the report of the inspector and ITO(E), which was apparently not confronted to the assessee however, the same was one of the basis for rejection of the application of the assessee. Anything relied upon by the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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