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Facts
The assessee, a registered charitable trust, was granted provisional registration under section 12AB and 80G. The CIT(E) issued notices for regular registration, but the assessee could not furnish all documents within the short time provided, leading to the rejection of their applications.
Held
The Tribunal held that the assessee could not provide the details due to the short time granted by the CIT(E), and the order was passed in violation of the principles of natural justice. The issue was remitted back to the CIT(E) for reconsideration.
Key Issues
Whether the rejection of registration applications under section 12AB and 80G by the CIT(E) for non-compliance within a short notice period violated principles of natural justice.
Sections Cited
12AB, 80G, 12AA
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Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SMT. BEENA PILLAI & SMT. RENU JAUHRI
& 1143/Mum/2025; A.Y. 2024-25 Shri Vardhman Shashvat Trust u/s.12AA and 80G of the Act passed by Ld.CIT(E), Mumbai for assessment year 2024-25 on following grounds of appeal : “ Being aggrieved by the order of the Learned – CIT (Exemption), Mumbai, this appeal petition is filed on the following amongst other grounds of appeal, which it is prayed may be considered without prejudice to one another.
1. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Exemption), Mumbai erred in rejecting application in form no. 10AB for approval / renewal of registration under section 80G alleging noncompliance to second notice issued at fag end of time barring period without offering reasonable opportunity of being heard.
2. Your Appellant craves leave to add to, amend, alter, modify, and / or delete any of the above grounds of appeal at or before final disposal of appeal.”
Being aggrieved by the order of the Learned-CIT (Exemption), Mumbai, this appeal petition is filed on the following amongst other grounds of appeal
, which it is prayed may be considered without prejudice to one another.
1. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Exemption), Mumbai erred in rejecting application in form no. 10AB for approval / renewal of registration under section 12AB alleging noncompliance to second notice issued at fag end of time barring period without offering reasonable opportunity of being heard.
2. Your Appellant craves leave to add to, amend, alter, modify, and / or delete any of the above grounds of appeal at or before final disposal of appeal.” Brief facts of the case are as under:
The assessee is registered public charitable trust and was granted provisional registration u/s.12AB of the Act from assessment year 2024-25 till 2026-27 effective from 29/12/2023.
& 1143/Mum/2025; A.Y. 2024-25 Shri Vardhman Shashvat Trust The assessee was also granted provisional registration u/s.80G on even date for identical period. 2.1 Subsequently, assessee made application in form 10AB for grant of regular registration u/s. 12AB and 80G of the Act. It is submitted that, the Ld.CIT(E) Mumbai, issued notice on 05/10/2024 to furnish documents/explanation in relation to the activities of the trust. 2.2 Assessee complied with this recruitment by submitting various documents and evidences on 04/11/2024. The Ld.CIT(E) again issued notice on 21/12/2024 calling upon assessee to provide details regarding expenses made towards the objects of the trust along with copy of bank statement to be submitted by 24/12/2024. 2.3 The Ld.AR submitted that, assessee was granted only 3 days for collecting the documents vide notice 21/12/2024 to be furnished before the Ld.CIT(E), which could not be fulfilled. The Ld.CIT(E), without considering the request of the assessee passed the impugned order rejecting the registration u/s.12AB and 80G of the Act. The Ld.AR submitted that, an opportunity may be granted to the assessee before the Ld.CIT(E) for furnishing all the relevant documents in support of its claim.
It is noted that, the assessee could not provide the relevant details within the short time granted by the Ld.CIT(E), and the Ld.CIT(E) passed impugned order in violation to the principle of natural justice. In the interest of justice, we thus remit the issue back to the Ld.CIT(E) for considering the applications in the light of the evidence furnished by the assessee in accordance with law.
& 1143/Mum/2025; A.Y. 2024-25 Shri Vardhman Shashvat Trust Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly the grounds raised by the assessee in both the appeals stands allowed for statistical purposes. In the result the appeals filed by the assessee stands allowed for statistical purposes. Order pronounced in the open court on 28/04/2025