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Facts
The assessee, a charitable trust, filed an application for renewal of registration in Form 10AB. The application was rejected ex-parte by the CIT(E) on grounds of non-compliance and incompleteness. The assessee contended that the non-compliance was unintentional and due to the advanced age of their Chartered Accountant.
Held
The Tribunal held that the CIT(E) wrongly relied on a circular as the assessee's application was filed before the circular's issuance. Therefore, the matter was restored to the CIT(E) for fresh examination with an opportunity for the assessee to be heard.
Key Issues
Whether the rejection of the renewal application for registration by the CIT(E) was justified on grounds of non-compliance, and if the relied-upon circular was applicable in this case.
Sections Cited
12AA, 12A, 10AB
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Income Tax Appellate Tribunal, ‘D’ BENCH
Before: SHRI AMIT SHUKLA & MS PADMAVATHY S
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 28/12/2024 passed by ld. CIT(Exemptions) denying renewal of registration in Form 10AB u/s.12AA. 2. Before us it has been stated that the order has been passed exparte on the ground of non-compliance. It had been stated that non-compliance was not deliberate and it was beyond the control of the assessee trust. Before us it had been stated that it is an Market Halai Memon Jamat old trust established on 03/11/1952 and assessee got registration u/s.12A on 28/03/1973. Since as per the new law assessee was required to file application for renewal and accordingly, Form 10AB was filed on 21/02/2014. However, the same was rejected by the ld. CIT (E) on the ground that the application was not complete and all the documents required to be accompanying the application is not furnished accordingly, the application was rejected. Thereafter, on advice of the then Chartered Accountant who was more than 80 years old assessee trust filed another application which has been rejected exparte by the ld. CIT(A) as assessee could not file requisite details during the time allowed.
After considering the facts and material on record, it is seen that assessee is a very old trust established in the year 01/04/1947 and it started its operation on 03/11/1952. Registration u/s. 12A was granted on 28/03/1973. Since assessee was required to renew its registration and accordingly, it was mandatory for the assessee trust to file renewal application in Form 10AB, which was filed on 21/02/2024. This application was rejected on the ground that it was incomplete. It had been stated that the CA of the assessee trust was very old person of more than 80 years who could not attend hearing or complied with the notices and also he advised to file fresh application in Form 10AB after completing the documents. The same has been rejected again by the CIT(E) due to non- compliance as the new CA appointed was not in India.
Market Halai Memon Jamat 4. From the perusal of the impugned order it is seen that ld. CIT(A) has relied upon the Circular dated 25/04/2024 whereas from the perusal of the Circular it is seen that liberty has been given for filing of fresh application where application has been filed after due date of filing in the wrong section, however, the same was applicable on or before the issuance of Circular dated 25/04/2024. The relevant para reads as under:- “4.1. Further, in case where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended lime provided in paragraph 3(ii) i.e 30.06.2024.”
Here in this case the original application was filed by the assessee on 21/02/2024 which is prior to the date of Circular. Thus, the circular has wrongly been relied by the ld. CIT (E). Accordingly, the matter is restored back to the file of the ld. CIT (E) who shall examine the application afresh and all the details which has been filed before us and ld. CIT (E) will decide the issue afresh after considering all the documents and after giving reasonable opportunity of hearing to the assessee. The assessee is also directed to comply with the notices, accordingly, appeal of the assessee is allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.