Sai Seva Sansthan Vs CIT (Exemption) (ITAT Lucknow)
Income Tax Appellate Tribunal (ITAT) Lucknow bench has set aside ex-parte orders issued by the Commissioner of Income Tax (Exemption) [CIT(E)], Lucknow, which had rejected applications for registration under Section 12A and approval under Section 80G(5) of the Income Tax Act, 1961, filed by Sai Seva Sansthan. The ITAT has remanded both matters back to the CIT(E) for fresh consideration, emphasizing the need for adequate opportunity to be heard for the applicant.
The appeals, ITA No. 751/LKW/2024 and ITA No. 750/LKW/2024, were filed by Sai Seva Sansthan against orders dated September 24, 2024. The core of the assessee’s argument was that the rejections stemmed from non-compliance, but this non-compliance was due to a lack of awareness regarding correspondence and hearing notices from the CIT(E)’s office.
Background of the Case: Sai Seva Sansthan, a trust reportedly engaged in charitable activities such as running old age shelters and a Ghaushala, sought registration under Section 12A(1)(ac)(iii) for its charitable status and approval under Section 80G(5)(iv) to enable donors to claim deductions. Both applications were rejected by the CIT(E) under Section 12AB(1)(b)(ii)(B) and Section 80G(5)(ii)(b)(B) respectively, citing non-compliance by the applicant.
The trust contended that it was unaware of the notices and correspondences sent by the CIT(E)’s office, leading to an involuntary failure to comply. They argued that the CIT(E) erred in rejecting the applications without any finding on the merits of their case, given the material available on record.
