JAMIYATUL QURESH BAITULMAL TRUST,AHMEDABAD vs. THE CIT (EXEMPTION),, AHMEDABAD

The assessee Trust has applied for registration u/s. 12AA in Form No. 10A under Rule 11AA of the Act on 17.03.2017. The Ld. Pr. Commissioner of Income Tax(Exemption) has rejected the application for approval u/s. 12AA of the Act on the ground that assessee has failed to file documentary evidences to enable him to satisfy about genuineness of its activity and to verify that those activities were in consonance with its object.

During the course of appellate proceeding before us the Ld. Counsel has filed Paper Book and contended that the required detail and copies of documents were furnished before the Ld. Commissioner of Income Tax and the same have not been considered before rejecting the application of the assessee vide order dated 28.09.2017.

On the other hand, the Ld. DR has supported the order of CIT(E).

We have heard both the sides and perused the material on record. With the assistance of Ld. Representative we have gone through the material placed in the Paper Book. It is noticed that vide letter dated 16.03.2017 the assessee has furnished the following document along with application made with Form No. 10A of the Act:- “1. Form No. 10A. 2. Registration certificate by Charity Commissioner. 3. Copy of Memorandum of Association. 4. List of trustees. 5. Copies of Pan number of the Trust and trustees.

Thereafter, vide letter dated 12.05.2017 the Ld. Commissioner of Income Tax(Exemption) has directed the assessee to produce different details and documents and the assessee vide letter dated 25.05.2017 has furnished the required information from Serial No. 1 to 30 on all the 33 points stated by the Ld. CIT(E) in his letter dated 12.05.2017. Thereafter, on 01.08.2017 the Ld. CIT(E) has issued &2869/Ahd/2017(Jamiyatul Quresh Baitulmal Trust vs. Pr. CIT(E)) A.Y. N.A. 3 another letter to the assessee for submission of further documents and information pointed at Serial No. 1 to 25 of the letter. The assessee has responded vide letter dated 12.08.2017 stating that similar letter was received on 12.05.2017 and the required information was furnished vide letter dated 25.05.2017.

On perusal of the foregoing facts it is observed that Ld. CIT(E) has not specifically pointed out the information which were to be submitted by the assessee and similar type of the letter i.e. dated 12.05.2017 was issued on 01.08.2017 after incorporating additional details. After considering the above opaqueness in the communication made to the assessee, we are of the view that it will be appropriate to restore this case to the file of CIT(E) for adjudicating the issue denovo on merit after considering the detail furnished by the assessee. Accordingly, the issue in appeal is restored to the file of the CIT(E) for adjudicating a fresh after affording adequate opportunity to the assessee. Therefore the appeal is allowed for statistical purpose.

The brief facts is that assessee has applied for registration of the Trust u/s. 80G(5) of the Income Tax Act on 22.05.2017 in Form No. 10G under Rule 11AA of the Act. The Ld. Commissioner of Income Tax(Exemption) Ahmedabad has rejected the application filed in Form No. 10G for the approval u/s 80G(5) of the Income Tax Act stating that assessee has failed to file documentary evidences therefore the genuineness of the activities of the Trust and also could not verified.

During the course of appellate proceeding before us the Ld. Counsel has referred the Paper Book filed on 23.09.2019 comprising of particulars of information/documents furnished before the Ld. Commissioner of Income Tax(Exemp.) and contended that same have not been considered before rejecting application of the assessee vide order u/s. 12AA of the Income Tax Act dated 28.09.2017. &2869/Ahd/2017(Jamiyatul Quresh Baitulmal Trust vs. Pr. CIT(E)) A.Y. N.A. 4

On the other hand, the Ld. DR has supported the order of Ld. CIT(E) Ahmedabad.

In the light of the above facts and circumstances we observed that Ld. Commissioner of Income Tax has not given specific findings after considering the detail furnished by the assessee as referred in letter dated 21.11.2017 and not given specific finding to substantiate that assessee Trust has neither carried out any charitable/religious activity nor established corpus to undertake the charitable activity. Therefore, we are of the view that it will be appropriated to restore this case to the file of Commissioner of Income Tax(Exemp.) for deciding a fresh as Quresh Baitulmal Trust vs. Pr. CIT(E)) A.Y. N.A. 5 directed above after providing adequate opportunity to the assessee. Therefore, the appeal of the assessee is allowed for statistical purpose.

In the result, both appeals of the assessee are allowed for statistical purpose.