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Facts
The assessee trust filed applications for registration u/s 12AA and u/s 80G. The CIT(E) rejected the applications citing the assessee's inability to file complete details, particularly regarding activities and expenditures, despite the assessee claiming that the notice was received late and they needed more time to compile information.
Held
The Tribunal held that the CIT(E) did not provide a reasonable opportunity to the assessee to furnish the required details before rejecting the applications. Therefore, the matter was remanded back to the CIT(E).
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration u/s 12AA and 80G without affording a reasonable opportunity of being heard to the assessee.
Sections Cited
12AA, 80G, 12A(1)(ac)(iii), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH
Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL
आदेश / O R D E R PER BENCH: The aforesaid appeals have been filed by the assessee against orders passed by ld. CIT (Exemption)-Mumbai rejecting the registration u/s.12AA and application u/s.80G. 2. At the outset, it had been stated that the assessee had filed an application in Form 10AB u/s.12A(1)(ac)(iii) seeking & 1196/Mum/2025 Rudranaad Foundation Trust registration u/s.12AB of the Act which has been rejected by the ld. CIT(E) on the ground that assessee could not file the details.
From the records it is seen that the assessee trust had obtained provisional registration on 05/09/2022 which was valid upto A.Y.2025-206. Thereafter, Trust applied for final registration on 12/06/2022 alongwith copy of trust deed, registration certificate issued by the registration of charitable trust, copy of provisional registration certificate and financials for the F.Y.2022-23. The ld. CIT (E) had asked for the details which was submitted by the assessee on 12/12/2024 alongwith submissions. However, another letter was issued on 19/12/2024 by the ld. CIT(E) fixing the date for submission on 23/02/2025, whereby asking for proof of activities done, proof of expenditure incurred such as bills, payment receipts and bank statements highlighting the transactions and the copy of ITR for A.Y.2022-23 and A.Y.2023-24. However, it has been stated that notice sent through mail was seen by the assessee on 21st December and the due date of submission was on 23rd December. Since it was a new trust and does not have full time resource to provide all the information quickly, therefore, requisite details were under compilation and could not be submitted on 23rd December and accordingly, the ld. CIT (E) has decided the application without giving any reasonable opportunity. In view of the aforesaid facts and in the interest of substantial justice, we are remitting this issue back to the file of the ld. CIT (E) to consider all those documents which has now already been filed before us and also any other document / evidence required by him which assessee & 1196/Mum/2025 Rudranaad Foundation Trust shall furnish before the ld. CIT(E) to decide the issue, accordingly, the matter is remanded back to the file of the ld. CIT(E).
4. Similarly, the appeal relating to rejection of application u/s 80G, the matter is also remitted back to the ld. CIT (E) as the same has already been decided against due rejection of application u/s.12AB. Accordingly, this issue is also restored back to the file of the ld. CIT (E).
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on 24th April, 2025.