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Facts
The assessee, a Charitable Trust, filed applications for registration u/s. 12AB and approval u/s. 80G. The CIT(E) rejected these applications due to non-compliance with documentation requirements and queries.
Held
The Tribunal held that the rejection was based solely on non-furnishing of documents. Given the assessee's assurance to comply, the orders were set aside and the matter was restored to the CIT(E) for fresh consideration.
Key Issues
Whether the rejection of registration and approval applications by the CIT(E) for non-compliance was justified, or if the assessee should be granted another opportunity to comply.
Sections Cited
12A, 80G, 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, VP & SHRI GIRISH AGRAWAL, AM
& 6047/Mum/2024 (Assessment Year: 2025-26) Mantra Yog Gau Seva Trust, CIT Exemption Flat No. 2 & 3, Shyamkripa, 601, 6th Floor, Cumbulla Hill 1114-Devidayal Road, Vs. MTNL Building, Peddar Road, Mulund West, Mumbai-400 002 -400080 PAN/GIR No. AAHTM 8938L (Appellant) : (Respondent) Appellant by : Shri Ashok Mehta Respondent by : Smt. Sanyogita Nagpal Date of Hearing : 14.01.2025 Date of Pronouncement : 21.01.2025 O R D E R Per Saktijit Dey, VP: The captioned appeals have been filed by the assessee, challenging the orders passed by learned Commissioner of Income Tax (Exemptions), Mumbai, (‘ld.CIT(E)’ for short), rejecting applications seeking registration u/s. 12A and section 80G of the Income Tax Act, 1961 (‘the Act’ for short).
We have heard Shri Ashok Mehta, learned counsel appearing for the assessee and Smt. Sanyogita Nagpal, learned Departmental Representative ('ld. DR' for short).
Briefly, the facts are, the assessee is stated to be a Charitable Trust, filed applications before the competent authority seeking registration u/s. 12AB of the Act as well as u/s. 80G of the Act. While verifying assessee’s application for registration u/s. 12AB of the Act, ld. CIT(E) found that in terms with Rule 17A, certain documents were required to be filed along with the application for registration. Finding some deficiencies in complying to the said provision, ld. CIT(E) called upon the assessee to remove the deficiencies. Additionally, he called for further documents/clarifications from the assessee. Alleging that the assessee did not comply with the queries raised in the subsequent show cause notices, ld. CIT(E) rejected assessee’s application seeking registration u/s. 12A of the Act. As a natural corollary, application seeking approval u/s. 80G of the Act was also rejected.
Before us, it is the say of the assessee that though past compliance was made, however, complete compliance could not be made because of unavoidable circumstances. Further, ld. Counsel assured that given an opportunity, assessee will comply with all the queries raised by ld. CIT(E).
The ld. DR submitted, in case the assessee is in a position to comply with the queries raised by the competent authority, the matter may be re-examined by him.
Having considered rival submissions, we find, the only reason based on which assessee’s applications seeking registration u/s. 12AB and approval u/s. 80G of the Act have been rejected is on account of non-furnishing of certain documents/clarifications sought from the assessee. However, before us, ld. Counsel appearing for the assessee has given an assurance that given an opportunity, all the queries raised by the competent authority would be complied with.
Considering the above, we are inclined to set aside the impugned orders of the ld. CIT(E) and restore the matters back to him for reconsideration of applications filed, seeking registration u/s. 12AB and approval u/s.80G of the Act on their own merits. Before taking decision on these applications, the assessee may be provided due and reasonable opportunity of being heard. With the afore-said observations, the matters are restored back to ld. CIT(E).
In the result, the appeals are allowed for statistical purposes.
Order pronounced in the open court on 21 / 01/2025