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Facts
The assessee, a 24-year-old society with FCRA registration, applied for registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application, citing the assessee's failure to provide required details and information regarding the genuineness of its activities and charitable objects.
Held
The Tribunal found it fit to grant the assessee a further opportunity to present its case before the Ld. CIT(E) to prevent miscarriage of justice. The matter was set aside to the Ld. CIT(E) for fresh consideration.
Key Issues
Whether the CIT(E) was justified in rejecting the assessee's application for registration without granting a proper opportunity for hearing and consideration of evidence.
Sections Cited
12A(1)(ac)(ii)
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Income Tax Appellate Tribunal, “G” BENCH, DELHI
Before: MS. MADHUMITA ROY & SHRI NAVEEN CHANDRA
The instant appeal filed by the assessee is directed against the order passed by the Ld. CIT(E), Delhi dated 24.01.2025 rejecting the application dated 15.07.2024 in Form 10AB for Registration under Section 12A(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2024-25.
The matter relates to rejection of the grant of Registration under Section 12A(1)(ac)(ii) of the assessee trust.
Heard the parties, perused the records. In fact, questionnaire dated 19.09.2024 with a request to furnish certain details and/or clarification in support of claim of Registration under Section 12A(1)(ac)(ii) of the Act was made by the CIT(E) against the application dated 15.07.2024 in Form No 10AB for Registration of the trust of the assessee under Section 12A(1)(ac)(ii) of the Act. The assessee is a 24 years old society and also having FCRA registration. However, as the assessee failed to file the details and/or information as required by the notice issued by the Ld. CIT(E) in support of the genuineness of the activities, charitable objects and commencement of the activities for consideration of the grant of registration of the trust, the provisional registration granted by and under dated 25.05.2021 & 30.09.2024 for period commencing from AY: 2020-21 to 2022-23 & 2025-26 to 2027-28 stood cancelled.
Having regard to the issue involved in the matter in order to prevent the miscarriage of justice, we find it fit and proper to grant a further opportunity of being heard to the assessee to place the claim for grant of registration effectively before the Ld. CIT(A). Hence, the appeal is disposed of by setting aside the issue to the file of the Ld. CIT(E) for consideration afresh upon granting an opportunity of being heard to the assessee and upon considering the evidences on record or any other evidence which the assessee may chose to file at the time of hearing of the matter.
The appeal preferred by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 06.08.2025