No reference made to the clarifications of the appellant in the order for rejection of exemption, order to be set aside: ITAT




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No reference made to the clarifications of the appellant in the order for rejection of exemption, order to be set aside: ITAT 

Federation of Delhi Textile Merchants vs ITO (Exemption) (ITA No. 7807/Del/2019)

 

Facts:

  1. The appellant filed an application electronically on 24/01/2019 in Form No. 10G seeking exemption u/s 80G of the IT Act. When the Commissioner (Exemption) sought justification of the expenses incurred, seminar bills along with hotel bills were submitted, which also contained payments made for consumption of liquor.

 

  1. The Commissioner (Exemption) held that the activity involving serving of liquor cannot be set to be charitable, usage of money collected from donors is to be utilized for welfare of general public, not for enjoyment of people enjoying the state of affairs of the federation.

 

  1. Accordingly it was concluded that the activity involving serving of liquor cannot be set to be charitable, usage of money collected from donors is to be utilized for welfare of general public, not for enjoyment of people enjoying the state of affairs of the federation. However, the details of clarification/reply given by the Applicant in the order have not been mentioned in the order.

 

ITAT New Delhi held as below:

  1. The Ld. Commissioner of Income Tax (Exemption) has relied on various bills of the Appellant wherein the service of liquor has been mentioned, but the Ld.CIT(A) has not mentioned the details of clarification/reply given by the Applicant in the order impugned and not adjudicated the reply given by the Applicant. The order of the Ld.CIT(A) is non speaking one.

 

  1. Therefore, the matter is set aside to the file of CIT (Exemption) to decide the matter afresh in accordance with law and pass appropriate speaking order. Needless to say that an opportunity of being heard be given to the Appellant herein.

 

 




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