Spirit of Helping Foundation vs CIT (Exemptions)

PER S.RIFAUR RAHMAN,AM:

The assessee has filed appeal against the order of the Learned Commissioner of Income-tax (Exemptions), Chandigarh [“Ld. CIT(A)”, for short]dated 03.11.2025 for the Assessment Year 2026-27.

At the time of hearing, ld. AR for the assessee brought to our notice that the assessee filed an application for registration under section 12(1)(ac)(vi)-ITEM(B) of the Income-tax Act, 1961 (for short ‘the Act’). He submitted that ld. CIT (E) observed that on scrutiny of the above, it was found that the documents provided by the applicant are not sufficient for assessing the genuineness of the activities of the Trust and he further observed that it also could not be verified from the available documents whether the applicant is complying with the objections mentioned in the trust deed or not. Ld. AR submitted that ld. CIT (E) issued a questionnaire electronically on 08.09.2025. Further ld. CIT (E) observed that no response is received by him. Ld. AR submitted that the ld. CIT (E) dismissed the appeal for non-appearance and in the absence of the requisite submissions of the assessee. He submitted that there are reasons for assessee for not appearing before the ld. CIT (E). Accordingly, he pleaded that the matter may be restored to the file of ld. CIT (E) to decide the issue with the prayer to give an opportunity of being heard to the assessee.

On the other hand, ld. DR for the Revenue objected to the submissions of the ld. counsel for the assessee and relied on the order of Ld. CIT (E).

Considered the rival submissions and material placed on record. We find that ld. CIT (E) observed that the documents provided by the applicant are not sufficient for assessing the genuineness of the activities of the Trust, however ld. CIT (E) dismissed the appeal for non-appearance and in the absence of the requisite submissions of the assessee. In our considered view and in the interest of justice, we are of the opinion that assessee should be given one more opportunity of being heard on merits and to file all the necessary documents if required. Therefore, we restore the matter to the file of ld. CIT (E) and direct ld. CIT (E) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and file necessary documents and appear before the ld.CIT (E) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.