TIRTHANKER AADINATH EDUCATIONAL TRUST,GHAZIABAD vs. CIT, EXEMPTION, LUCKNOW

The present appeal has been filed by the assessee against the order of the ld. CIT, Exemption, Lucknow dated 14.08.2017.

The assessee filed application for registration u/s 12AA of the Income Tax Act, 1961 on 23.02.2017. The ld. CIT(E), Kanpur accorded an opportunity of being heard while letter dated 06.07.2017 fixing the hearing on 11.08.2017 and as per the order of the ld. CIT(E), on the designated date none appeared on behalf of the assessee.

The ld. CIT (E) rejected the application on the grounds that the books of accounts have not been produced and the activities were not found to be executed by the assessee. The 2 Tirthanker Aadinath Educational Trust ld. CIT(E) held that failure to present indicates that it is an attempt to introduce money sourced out of unknown sources into the trust and planned it as a part of the funds of the trust.

We find no substantiation on the reasoning given by the ld. CIT(E). In the interest of justice, we remand the matter back to the file of the ld. CIT(E) with directions to the assessee to abide the notices issued by the revenue and present their case before the ld. CIT(E) denovo.

As a result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 19/03/2021