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Income Tax Appellate Tribunal, PATNA BENCH, PATNA
Before: DR. MANISH BORAD, HON’BLE & SHRI SONJOY SARMA, HON’BLE
O R D E R
PER SONJOY SARMA, JM:
This appeal of the assessee for the assessment year 2013-14 is directed against the order dated 12.10.2023 passed by the ld. Commissioner of Income-tax (Exemption), Patna [hereinafter referred to as ‘the ld. CIT(A)’].
Brief facts of the case are that the assessee is a public charitable trust doing charitable activity running eye hospital in the name of Mahavir Netrayalya for treatment of poor people and other charitable activities. The assessee trust made an application for provisional registration u/s 12A(1)(ac)(vi) for A.Y. 2021-22 to 2023- 24. Accordingly, provisional registration granted on 27.05.2021 to the assessee. The assessee trust has also made an application for regular registration u/s 12(A)(1)(ac)(iii) r.w.s. 12AB(1)(b) of the Act.
In the course of proceedings u/s 12AB notice was issued to the assessee requiring to submit certain documents and information such as notes on activities under taken by the trust during the last three years along with annual accounts and supporting evidence, bank statements, location detail etc. In compliance to the notice,
2 Sahu Mahabir Trust A.Y. 2021-22 to 2023-24 assessee submitted various documents as asked for. However, ld. CIT(E) issued notice dated 08.09.2023 stating that the area of operation of the trust should be restricted within India and also raised objection regarding the object of the trust activities. In compliance to the notice, assessee trust has resolved that the trust area of operation shall be limited within India only and also stated that trust shall not do any commercial activities and furnished the copy of resolution dated 12.09.2023 along with detailed submission dated 19.09.2023 before the ld. CIT(E). In the intervening time, the president of the trust due to his illness became incapacitated to move and could not prepare the supplementary trust deed for the changes as required and suggested by the I.T. department. Since assessee could not submit necessary supplementary trust deed. The claim of assessee’s trust for regular registration application on 12.01.2023 was rejected and also cancelling the provisional registration granted on 27.05.2021 to the assessee.
Aggrieved by the order of ld. CIT(E), assessee has preferred the appeal praying before the bench to set aside the impugned order with the direction to validate the continuation of registration of the assessee for A.Y. 2021-22 to 2023-24.
At the time of hearing, ld. AR stated that after registration of the supplementary trust deed with the sub-registrar, Darbhanga dated 04.11.2023. The assessee has again applied for regular registration on 06.11.2023 and the regular registration vide order dated 28.11.2023 from the A.Y. 2024-25 to 2028-29 has been allowed by ld. CIT(E). However, assessee still awaited for A.Y. 2021-22 to 2023- 24 since the application of the assessee was already set aside by CIT(E) vide order dated 12.01.2023. In such situation, it is necessary
3 Sahu Mahabir Trust A.Y. 2021-22 to 2023-24 to set aside the impugned order passed by ld. CIT(E) with the direction to re-consider the claim of the assessee by passing an appropriate order for regular registration as claimed by the assessee.
We after hearing the submission of the parties and perused the material available on record find that assessee due to bona fide reason could not submit the supplementary deed and other documents as required by the I.T. department for granting regular registration of trust for getting benefit under the Act. Therefore, the claim of the assessee was turn down by CIT(E) by rejecting the application of the assessee trust, it is therefore necessary to remand back the whole issue to ld. CIT(E) with the direction to re-examine the issue afresh after affording reasonable opportunity of being heard to the assessee by obtaining necessary document from the assessee in relation with claim made by assessee. The assessee also directed to appear before the ld. CIT(E) as and when notice for such purposes issued by ld. CIT(E) that event assessee should appear before him without any fail. In terms of the above, the appeal of the assessee is allowed for statistical purposes.