Proveg Foundation Vs CIT (Exemptions) (ITAT Bangalore)
No Opportunity, No Justice – CIT(E) Cannot Rely Solely on Subordinate Reports Without Independent Application of Mind; Failure to Furnish Adverse Reports to Assessee Violates Natural Justice : ITAT Bangalore
Assessee is a company registered u/s. 8 of the Companies Act, 2013 & also registered with Darpan portal of Niti Ayog & got provisional registration & also provisional approval u/s. 80G(5). Assessee to get the permanent registration & the approval, had filed an application in form 10AB. CIT(E) sought for the report from both i.e. Range Head & Jurisdictional AO & the authorities had communicated their report to the CIT(E) & in the said report they had not recommended for granting the registration as well as for the renewal of the 80G. CIT(E) without furnishing the report of the authorities to Assessee had simply extracted the recommendation & held that the foundation has not started any activity till the date of its inception. Further, CIT(E) had observed that no bank account details were furnished & the genuineness of the receipts are also not established & therefore the exact nature of activities would not be ascertained. CIT(E) further observed that the application is premature at this stage & rejected for non-commencement of activities.
