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

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ITA 6054/DEL/2017Status: DisposedITAT Delhi19 March 20212 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found no substantiation for the CIT's reasoning and decided to remand the matter back to the CIT. The assessee was directed to comply with notices and present their case anew.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The CIT rejected the application because the assessee failed to appear for a hearing and did not produce books of accounts.

What were the issues?

Whether the CIT was justified in rejecting the application for registration under Section 12AA based on the assessee's non-appearance and failure to produce books of accounts.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: Sh. Bhavnesh SainiDr. B. R. R. Kumar

Hearing: 10.03.2021Pronounced: 19.03.2021

Per Dr. B. R. R. Kumar, Accountant Member:

1.

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

2.

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.

3.

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.

4.

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.

5.

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

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