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Facts
The assessee filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(Exemption) rejected the application, citing non-receipt of reply to notices and failure to establish the genuineness of the trust's activities.
Held
The Tribunal set aside the order of the CIT(Exemption) and remanded the matter back for fresh consideration. The assessee is to be given an opportunity to submit required documents and be heard.
Key Issues
Whether the CIT(Exemption) erred in rejecting the registration application without providing adequate opportunity for the assessee to submit documents and clarifications.
Sections Cited
12A(1)(ac)(iii), 12AB
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Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption), Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)/Ld. CIT(E)’] passed in respect of registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.06.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1) That on the facts as well as on law and circumstances of the case, Ld. CIT (Exemption) was grossly erred in rejecting the application filed for registration under section 12A(1)(ac) (iii) of the Act, therefore the same to be set aside and the matter be restored back to the file of the Ld. CIT(Exemption) for fresh hearing. I.T.A. No.: 1897/KOL/2025 Assessment Year: N.A. Kiran Educational Trust. 2) That the Ld. CIT (Exemption) erred in rejecting the registration under section 12A(1)(ac)(iii) of the Act without considering the submission of the appellant made in compliance to the notices issued during the proceedings, therefore the same to be set aside and the matter be restored back to the file of the Ld. CIT(Exemption) for fresh hearing. 3) That the impugned Rejection Order dated 22/06/2025 is otherwise perverse based on presumptions, surmises, conjectures, hearsay, gossips and therefore illegal and void ab-initio, therefore the same to be set aside and the matter be restored back to the file of the Ld. CIT(Exemption) for fresh hearing. 4) The appellant craves leave to produce additional evidences in terms of Rule 29 of the Income Tax (Appellate Tribunal) Rules 1963. 5) The appellant craves leave to press new, additional grounds of appeal or modify, withdraw any of the above grounds at the time of hearing of the appeal.”
Brief facts of the case are that the assessee had filed an application for registration u/s 12A(1)(ac)(iii) of the Act in Form No. 10AB. Accordingly, vide notice dated 01.04.2025, certain information was sought from the assessee by the Ld. CIT (Exemption) but no reply was received from the assessee. However, in response to a reminder notice dated 21.05.2025, the assessee submitted various details along with supporting documents. The Ld. CIT (Exemption) carefully perused the submissions and sought further certain clarifications from the assessee. In response thereof, the assessee did not submit any reply; therefore, the Ld. CIT (Exemption) noted that the genuineness of the activities of the Trust was not established and hence, the Trust was not eligible for registration u/s 12A(1)(ac)(iii) of the Act. Therefore, the Ld. CIT (Exemption) treated the application filed by the assessee as non- maintainable and rejected the application u/s 12A(1)(ac)(iii) of the Act and also cancelled the provisional certificate issued to the assessee. I.T.A. No.: 1897/KOL/2025 Assessment Year: N.A. Kiran Educational Trust.
Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal.
We have heard the rival contentions and have also gone through the facts of the case. During the course of the appeal, though the assessee sought adjournment, however, the Bench was of the view that the Ld. CIT (Exemption) had denied the claim of exemption u/s 12AB of the Act merely on account of non-furnishing of supporting documents as was called for. Therefore, in the interest of justice, it was considered imperative that the assessee may be granted another opportunity to file its submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and claim of approval. Hence, the order of the Ld. CIT (Exemption) is hereby set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and after allowing an opportunity to the assessee to furnish the details sought in respect of the queries raised and thereafter consider the application in accordance with law. For statistical purposes, the grounds of appeal are partly allowed.
In the result, this appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 30th December, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 29.12.2025 Bidhan (Sr. P.S.) I.T.A. No.: 1897/KOL/2025 Assessment Year: N.A. Kiran Educational Trust. Copy of the order forwarded to:
Kiran Educational Trust, Brajaballavpur, Patashpur, Purba Medinipur, West Bengal, 721456. 2. CIT(Exemption), Kolkata.
CIT(A)-
CIT-
CIT(DR), Kolkata Benches, Kolkata.
Guard File. //// By order