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Facts
The assessee, a trust established in 1981 for religious and charitable activities, received provisional registration under Section 12A of the Act. It applied for regularization of this approval, but the CIT(Exemptions) rejected the application due to non-compliance with notices, as the limitation period for deciding the application was expiring.
Held
The Tribunal held that the assessee deserves a second opportunity to furnish the necessary documents. Therefore, the issue is restored to the file of the CIT(Exemptions), who is directed to decide the matter afresh after affording a reasonable and adequate opportunity of being heard to the assessee.
Key Issues
Whether the CIT(Exemptions) was justified in rejecting the application for regularization of registration under Section 12AB due to non-compliance, without granting further opportunity to the assessee.
Sections Cited
12AB, 12A
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Income Tax Appellate Tribunal, ‘G’ BENCH MUMBAI
आदेश / O R D E R PER NARENDRA KUMAR BILLAIYA (A.M):
This appeal by the assessee is preferred against the order dated 19.03.2023 by CIT(Exemptions) Mumbai, who rejected the application for grant of registration u/s 12AB of the Act. None appeared on behalf of the assessee inspite of notice therefore, we decided to proceeds ex-parte. The Ld.DR was heard at length case records carefully perused and relevant Yuvak Mandal documentary evidences brought on record duly considered.
Briefly stated facts of the case are that the assessee is a trust established on 24.08.1981. The main objects for which the trust was established to carry out Religious and Charitable activities. During Ganpati festival it carries out charitable activities like distribution of books, blankets and food material to the poor and needy.
The assessee was granted provisional registration u/s 12A on 05.04.2022 for 3 years for the period from A.Y. 2022-23 to A.Y. 2024-25. The trust applied for regular regularization of earlier provisional approval granted u/s 12A of the act.
The present application by the assessee has been treated for non- compliance to the notice issued by CIT(exemption). In the absence of necessary compliance by the assessee the Ld. CIT(exemption) chose to decide on this application on or before 31.03.2023 has the period of limitation was expiring the Ld. CIT(exemption) rejected the application.
We have carefully perused the order of the Ld. CIT(exemption) with the relevant material brought on Yuvak Mandal record. We are of the considered view that the assessee deserves a second opportunity to furnish all the necessary documents in support of its application for registration. Therefore, in the interest of justice and fair play we restore the issue to the file of the Ld. CIT(exemption). The assessee is directed to comply with all necessary documents as per provision of law and has being asked by the approving authority. The Ld. CIT(exemption) is directed to decide the issue a fresh after affording a reasonable and adequate opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14.07.2025.