DAWOODI BOHRA JAMAT,PALGHAR vs. CIT EXEMPTION PUNE, PUNE

Briefly stated, the facts are that the assessee is a religious trust constituted in the year 1953 and registered under the provisions of the Maharashtra Public Trusts Act. The assessee was granted provisional registration under section 12AB vide Form No.10AC with effect from 27.05.2021. Upon expiry of the provisional registration, the assessee filed an application in Form No.10AB on 04.06.2024 seeking regular registration under section 12AB. During the course of proceedings, the learned CIT(E) issued a notice dated 13.07.2024 calling upon the assessee to furnish various details relating to its objects, activities and compliance with the statutory requirements contemplated under section 12AB. On the request of the assessee, the hearing was adjourned and another notice dated 30.07.2024 was issued fixing the hearing on 08.08.2024. Thereafter, a detailed show cause notice dated 23.11.2024 was issued pointing out certain deficiencies and requiring the assessee to explain as to why the application should not be rejected. Ultimately, vide order dated 10.12.2024, the learned CIT(E) rejected the application under section 12AB and also cancelled the provisional registration earlier granted to the assessee.

From the impugned order, we find that the learned CIT(E) has recorded that despite sufficient opportunities, the assessee

None appeared on behalf of the assessee despite service of notice. We have, therefore, proceeded to dispose of the appeal ex parte qua the assessee after hearing the learned Departmental Representative and upon careful examination of the material

We have carefully considered the impugned order and the material available on record. From the statement of facts accompanying the appeal, it is noticed that the assessee has specifically pleaded that the show cause notice dated 23.11.2024 was sent to the email address of the former manager of the trust, who had already ceased to be associated with its affairs. Consequently, according to the assessee, the trustees remained unaware of the issuance of the said show cause notice and were, therefore, deprived of the opportunity of furnishing the requisite explanation and the supporting documentary evidence regarding the activities of the trust. It has also been stated that the trust possesses all the relevant records relating to its activities, beneficiaries and supporting evidences, which could not be produced before the learned CIT(E) because the show cause notice had never come to the knowledge of the trustees.

There can be no dispute that while examining an application under section 12AB, the learned CIT(E) is required to satisfy himself regarding the objects of the trust, the genuineness of its activities and compliance with such statutory requirements as are relevant for achieving its objects. Thus, the deficiencies noted by the learned CIT(E) in the impugned order undoubtedly fall within the scope of enquiry contemplated under section

Considering the entirety of the facts and circumstances of the case, particularly the specific plea raised by the assessee that the show cause notice dated 23.11.2024 had been transmitted to the email address of the former manager and consequently did not come to the knowledge of the trustees, we are of the considered opinion that the matter deserves to be restored to the file of the learned CIT(E). The impugned order primarily proceeds on the absence of supporting evidence regarding the genuineness of the activities of the trust and also on the interpretation of the objects contained in the trust deed. Both these aspects require proper factual examination after considering the relevant documents, evidences and explanations which the assessee may produce before the learned CIT(E). In our considered view, the interest of substantial justice would be better served if one effective opportunity is granted to the assessee to place all the relevant material before the learned CIT(E.) Accordingly, without expressing any opinion on the

In the result, the appeal of the assessee is allowed for statistical purposes.