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Income Tax Appellate Tribunal, “ A ” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA
आदेश / O R D E R
PER PRADIP KUMAR KEDIA - AM: The captioned appeal has been filed at the instance of the Assessee against the order of the Principal Commissioner of Income Tax(Exemptions)-Ahmedabad [Pr.CIT(E) in short] dated 19/09/2017.
ITA No. 2605/Ahd/2017 Mahant Shree 108 Gurjardasji Guru Babu Mayadasji Trust vs. Pr.CIT - 2 -
The grounds of appeal raised by the Assessee read as under:-
The Ld.Principal Commissioner of Income tax (Exemption), Ahmedabad has erred on facts and in law by rejecting assessee’s application for registration of trust u/s.12A(2) of the act. 2. 3. The Ld. Principal Commissioner of Income tax (Exemption), Ahmedabad has erred on facts and in law in not considering the submission made by the trust vide letter dated 17/08/2017 filed on 31/08/2017.
The Ld.AR for the assessee pointed out that application of the assessee for registration of Trust under s.12AA of the Act has been wrongly denied without following the due procedure. The Ld.AR referred to the reply made to the questionnaire as appearing at page No.9 of the paper-book. The Ld.AR submitted that the aforesaid reply was submitted to the Pr.CIT(Exemptions) on 31/08/2017. The Pr.CIT(E) however, declined to grant registration without issuing any show-cause for rejection of registration sought under section 12AA of the Act and passed order mechanically. The Ld.AR accordingly urged that appropriate directions should be given to the Pr.CIT(E) in this regard for consideration of matter afresh.
The Ld.DR, on the other hand, submitted that the assessee has remained negligent in making compliance of the requirement for
ITA No. 2605/Ahd/2017 Mahant Shree 108 Gurjardasji Guru Babu Mayadasji Trust vs. Pr.CIT - 3 - registration. The points raised by the Pr.CIT(E) has not been precisely answered and consequently the Pr.CIT(E) was left with no option but to deny the approval under section 12AA of the Act.
On careful consideration of the facts and circumstances of the case, we notice that the assessee could establish absence of any culpability in alleged non-compliance before the Pr.CT(E). The assessee claims to be engaged in charitable activities for the benefit of public at large. Such trusts are governed by Honorary trustees and are established for philanthropic purposes. Therefore bearing such circumstances in mind, we consider it appropriate to provide one more opportunity to the assessee for the larger interest of natural justice for satisfying the Pr.CIT(E) for its case for registration as per application moved in this regard. The matter is accordingly remanded back to the file of Pr.CIT(E) for de novo adjudication after taking into account the submissions and explanations made on behalf of the assessee. It shall be open to the assessee to place such material and evidence before the Competent Authority as may be relevant for the purposes of obtaining registration under s.12AA of the Act.
ITA No. 2605/Ahd/2017 Mahant Shree 108 Gurjardasji Guru Babu Mayadasji Trust vs. Pr.CIT
- 4 - 6. In the result, assessee’s appeal is allowed for statistical purposes.
This Order pronounced in Open Court on 14/ 05/2019
Sd/- Sd/- (राजपाल यादव) (�द�प कुमार के�डया) �या�यक सद�य लेखा सद�य (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 14/ 05 /2019
ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The Pr.CIT (E), Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation .. 8.5.19 (dictation-pad 6-pages attached at the end of this appeal-file) 2. Date on which the typed draft is placed before the Dictating Member …10.5.19 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….14.5.19 7. Date on which the file goes to the Bench Clerk…………………14.5.19 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………