RAJ CHARITABLE TRUST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI, MUMBAI
Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SHRI AMIT SHUKLA, JM & MS PADMAVATHY S, AM
Per Padmavathy S, AM:
This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions) Mumbai [In short 'CIT(E)'] dated 25.12.2024. 2. The assessee is an educational trust engaged in the activity of imparting education and not for profit motive. The assessee applied for final registration under section 12A of the Income Tax Act, 1961 (the Act) on 18.06.2024 in Form 10AB.
The CIT(E) after perusing the applications submitted by the assessee found that the the application were not furnished by the assessee. The CIT(E) accordingly issued a notice on 17.10.2024 requesting the assessee to furnish the complete set of documents mentioned in Rule 17A(2) of Income Tax Rules, 1962 (The Rules). The assessee in response filed a letter seeking adjournment to furnish the required details. Subsequently, the CIT(E) issued two more notices dated 10.12.2024 and 18.12.2024. Since the assessee has not filed any response, the CIT(E) rejected the application seeking registration under section 12AB of the Act. The assessee is in appeal before the Tribunal against the order of the CIT(E).
We heard the parties and perused the material on record. The primary reason for CIT(E) to reject the registration is that the assessee has not filed the required documents and has not responded to the notices issued in this regard. The ld. AR during the course of hearing submitted that the assessee does not have a full time Accountant to look after the accounts and the taxation matters and therefore could not collate the various documents as required by the CIT(E). The ld. AR further submitted that the other Trustees of the assessee are ordinary lay persons and therefore could not respond to the notices in time. Accordingly the ld. AR prayed for one more opportunity to submit that relevant documents before the CIT(E). Considering the facts peculiar to the case and in the interest of natural justice and fair play, we are inclined to give one more opportunity to the assessee. Accordingly, the appeal is remitted back to the CIT(E) to consider the issue of final registration under section 12AB of the Act afresh based on the documents filed by the assessee and decide in accordance with law. The assessee is directed to file the necessary documents before the CIT(E) that are required in connection with the final registration under section 12AB of the Act without seeking unnecessary adjournments. It is ordered accordingly. 4. In result, the appeal of assessee is allowed for statistical purposes.
Order pronounced in the open court on 23-04-2025. (AMIT SHUKLA) (PADMAVATHY S)
Judicial Member Accountant Member
*SK, Sr. PS
Copy of the Order forwarded to :
1. The Appellant
2. The Respondent
3. DR, ITAT, Mumbai
4. Guard File
5. CIT
BY ORDER,
(Dy./Asstt.