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Facts
The appellant, a charitable trust, applied for registration under section 12AA. The CIT(E) issued notices seeking clarification, but found discrepancies and non-compliance from the appellant, leading to the rejection of the application and cancellation of provisional registration.
Held
The Tribunal noted that the appellant had filed details in response to the first notice but failed to comply with the second notice. Considering the totality of facts, the Tribunal restored the issue to the CIT(E) to provide an opportunity to the appellant to substantiate its case.
Key Issues
Whether the CIT(E) erred in rejecting the registration application without providing adequate opportunity to the appellant, and whether the matter should be remanded for fresh consideration.
Sections Cited
12AA, 12A(1)(ac)
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of appellant is directed against the order framed by ld. Commissioner of Income Tax (Exemption), Pune dated 24.09.2024 denying grant of registration u/s.12AA of the Income Tax Act, 1961 ( in short ‘the Act’).
Facts of the case in brief are that the appellant is a Charitable Trust registered under Maharashtra Public Trust Act, 1950. It is mainly formed with the object of providing education to all. It filed application on Form No.10AB under clause (iii) of section 12A(1)(ac) of the Act for grant of regular registration on 29.03.2024. In order to verify the genuineness of activities of the appellant, the ld. CIT (Exemption) issued a notice through ITBA portal on 24.05.2024 calling upon the appellant to file certain information/clarification. The appellant filed the requisite details.
However, the ld.CIT(E) issued another notice to the appellant on 13.09.2024 pointing out certain discrepancies (para 4 of the impugned order). There was no compliance from the side of appellant to such notice. In the circumstances, the ld.CIT(E) rejected the application filed by the appellant, thereby cancelling the provisional registration granted to it.
Aggrieved appellant is now in appeal before the Tribunal in the present appeal assailing the impugned order denying grant of registration u/s.12AA of the Act.
We have heard both the sides and perused the record placed before us. We find the appellant in response to the first notice issued by the ld. CIT(E) has filed the requisite details. However, when the ld. CIT(E) issued another notice asking the appellant to clarify regarding certain discrepancies found in the above submissions, the appellant failed to comply to the same. During the course of hearing before us, ld. Counsel for the appellant submitted that the appellant vide letter dated 25.06.2024 has filed all the details along with Registration Certificate, Trust Deed, MOA and other details as called for by the ld.CIT(E). However, the ld.CIT(E) without considering the said submissions/details and without providing reasonable opportunity rejected the application filed by the appellant. Considering the totality of the facts of the case, submissions made by the Ld. Counsel for the appellant and in the interest of justice, we deem it proper to restore the issue to the file of the ld. CIT(E) with a direction to grant an opportunity to the appellant to substantiate its case by filing requisite details and decide the issue as per fact and law after giving due opportunity of being heard to the appellant. The appellant is also hereby directed to make its submissions, if any, before the ld. CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the ld. CIT(E) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the appellant are accordingly allowed for statistical purposes.
In the result, the appeal of the appellant is allowed for statistical purposes.
Order pronounced on this 05th day of March, 2025.