RAOSAHEB MOHANLAL CHIMANLAL MANIYAR TRUST,INDIA vs. COMMISSIONER OF INCOME TAX (EXEMPTION), INDIA

Facts of the case in brief, are that the assessee filed an application in Form No.10AB on 07.05.2024 for registration of the trust under clause (iii) of section u/s 12A(1)(ac) of the Act. With a view to verify the genuineness of the activities of the assessee and compliance to requirements of any other law for the time being in objects, a notice was issued through ITBA portal on 19.06.2024 requesting the assessee to upload certain information / clarification. On verification of the details submitted by the assessee, the CIT(Exemption) noted certain discrepancies for which he issued another notice asking the assessee to explain as to why the application should not be rejected and the provisional registration granted earlier u/s 12AB of the Act should not be cancelled. The assessee in response to the same furnished certain details. The CIT(Exemption) went through the various documents filed by the assessee and not being satisfied about the charitable nature and the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects, rejected the application and also cancelled the provisional registration granted under u/s 12AB of the Act.

Aggrieved with such order of CIT(Exemption), the assessee is in appeal before the Tribunal by raising the following grounds: Based on the facts and circumstances of the case, the grounds of appeal of the appellant are as follows

The Ld. Counsel for the assessee submitted that after the various documents were filed, the CIT(Exemption) without giving an opportunity to the assessee as to which documents require further clarification, passed the order. Therefore, in the interest of justice, the assessee should be given any opportunity to substantiate its case to the satisfaction of the CIT(Exemption). She accordingly submitted that the matter may be restored to the file of the CIT(Exemption) with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details.

The Ld. DR on the other hand heavily relied on the order of the CIT(Exemption).

After hearing both the sides, we find the assessee in response to the notice issued by the CIT(Exemption) filed certain details. We find the CIT(Exemption) was not satisfied with the various details filed by the assessee and rejected the application for grant of registration u/s 12A of the Act and also the provisional registration granted earlier on the ground that there were certain discrepancies and achieving its objects. It is the submission of the Ld. Counsel for the assessee that the CIT(Exemption) has not pointed out any specific discrepancy or any other requirement which would have satisfied him for granting registration u/s 12A of the Act. It is also her request that given an opportunity, the assessee is in a position to file the requisite details before the CIT(E) to his satisfaction. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(Exemption) with a direction to grant one last opportunity to the assessee to substantiate its case by filing the requisite details to his satisfaction and decide the issue as per fact and law. The assessee is also hereby directed to submit the details as called for by the CIT(E) on the appointed date without seeking any adjournment under any pretext, failing which the CIT(Exemption) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 7. Since the issue relating to the registration u/s 12A of the Act has been restored to the file of the CIT(Exemption) for fresh adjudication, the issue relating to the grant of exemption u/s 80G is also restored to his file for fresh adjudication. 8. In the result, both the appeals filed by the assessee are allowed for statistical purposes.

अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent

4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file.