Loading judgment…
Facts
The assessee, a charitable trust engaged in education and social welfare, applied for registration under Section 12A(1)(ac)(iii) and Section 80G(5)(iii) of the Income Tax Act. The CIT(E) rejected the applications without providing an opportunity of being heard.
Held
The Tribunal found that the CIT(E) did not provide adequate opportunity for the assessee to be heard and did not properly consider the documents submitted. Therefore, the Tribunal restored the issues to the file of the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) was justified in rejecting the registration applications without granting a proper opportunity of being heard to the assessee.
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘C’ BENCH,
Before: SHRI MAHAVIR SINGH & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
Both the above captioned separate appeals by the assessee are preferred against the order of the ld. CIT(E), Chandigarh dated & 4775/DEL/2024 Janak Mohini Kapur Memorial Trust 14.02.2025 rejecting the application for registration u/s 12A(1)(ac)(iii) and u/s 80G(5)(iii) of the Income-tax Act, 1961 [the Act, for short].
Since both the captioned appeals were heard together and pertain to same assessee, they are disposed of by this common order for the sake of convenience and brevity.
Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules.
Briefly stated the facts of the case are that the assessee is a charitable trust engaged in education and social welfare activities for the benefit of underprivileged and marginalized sections of the society.
The assessee filed Form 10AB and applied for registration u/s 12A(1)(ac)(iii) and for permanent registration u/s 12AB of the Act. The ld. CIT (Exemption) issued notices and asked to furnish several documents to which the assessee filed its reply by furnishing the documents as called for.
& 4775/DEL/2024 Janak Mohini Kapur Memorial Trust 7. CIT (Exemption) rejected the registration applications vide order dated 14.02.2025 without granting any opportunity of being heard to the assessee. The assessee again applied for registration which was rejected.
The assessee is aggrieved and has come in appeal before us and submitted that the ld. CIT(E) did not consider the reply of the assessee nor its annexures and passed order. The ld. CIT(A) was not right in rejecting the applications of the assessee for registration 12A(1)(ac)(iii) and u/s 80G(5)(iii) of the Act.
Per contra, the ld. DR relied upon the orders of the ld. CIT(E).
We have given a thoughtful consideration to the order of the CIT (Exemption). We find that the assessee has filed several documents and evidences before us, which were filed by the assessee before the CIT(E), to establish the genuineness of the activities of the trust. The rejection of grant of registration by ld. CIT(A) is not justified as the ld. CIT(E) has not given adequate opportunity of being heard to the assessee which is apparent from the record. Accordingly, in the interest of justice and fair play, we restore the issues to the file of the ld. CIT(E). The assessee is & 4775/DEL/2024 Janak Mohini Kapur Memorial Trust directed to furnish the necessary documents for verification and the ld. CIT(E) is directed to examine the same and decide the issues as per the provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee.
In the result, both appeals of assessee in are allowed for statistical purposes.
The order is pronounced in the open court on 22.08.2025.