THE N NATARAJAN CHARITABLE TRUST,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

The assessee has filed online application on 14.06.2024 in Form No.10AB u/s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter “the Act”), seeking registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”). However, the Ld. CIT(E) rejected the application on the ground that the assessee failed to offer any satisfactory explanation regarding its activities, despite having been afforded sufficient opportunity.

The Ld. Authorized Representative (A.R) of the assessee before us has submitted that assessee trust is primarily engaged in conducting moot court competitions for law students and organizing similar competitions in India, but the assessee could not furnish supporting evidence at the relevant time. The Ld. AR therefore, prayed that one more opportunity be provided to the assessee to substantiate its claim.

The Ld. Departmental Representative (DR), on the other hand, supported the order passed by the Ld. CIT(E) in rejecting the application as the assessee has not complied with the notices issued.

We have heard the rival submissions, and perused the materials available on record. It is noted that the Ld. CIT(E) had rejected the application filed by the assessee seeking registration u/s. 12AB of the Act on account of assessee’s failure to provide satisfactory explanation regarding its activities. However, before us, the Ld. AR has contended that adequate opportunity was not granted by the Ld. CIT(E) to produce the necessary details. In the interest of justice and considering principles of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate its case before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter to his file with a direction to examine the application afresh, after providing due opportunity of being heard to the assessee in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes.