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Facts
The assessee, Matushree Parsanba Charitable Trust, filed an application for registration under Section 12A of the Income Tax Act, 1961. The CIT(Exemption) rejected the application and cancelled the provisional registration due to the failure to file documentary evidence. The assessee appealed against this order.
Held
The Tribunal noted that the CIT(A) had not clearly mentioned whether proper notice was served. In the interest of justice, the matter was remanded back to the CIT(E) for proper adjudication after verifying the details submitted by the assessee, ensuring principles of natural justice are followed.
Key Issues
Whether the CIT(Exemption) was justified in rejecting the application for registration and cancelling provisional registration without providing sufficient opportunities to the assessee, and whether the order to tax income under Section 115TD was appropriate.
Sections Cited
12A, 115TD
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Dr. BRR Kumar & Ms. Suchitra Kamble
आदेश/ORDER
Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 03-09- 2024 passed by CIT(Exemption), Ahmedabad for assessment year N.A..
The grounds of appeal
are as under:-
1. On facts and circumstances of the case the Hon'ble CIT (Exemption) is not justified in rejecting the application of the appellant filed for approval of registration u/s 12A of the I.T. Act, 1961.
Matushree Parsanba Charitable Trust, A.Y. N.A. 2. That, the Hon'ble CIT (Exemption) is not justified in rejecting the application of the appellant filed for approval u/s 12A of the I.T. Ac, 1961 without providing effective and sufficient opportunities to the appellant to furnish the details called for.
3. That, the Hon'ble CIT (Exemption) is not justified in rejecting the provisional approval already granted u/s 12A of the 1.T. Act, 1961 only for the reason that the appellant could not comply the notices issued during the proceedings u/s 12A of the Act.
4. That, the Hon'ble CIT (Exemption) is not justified in passing order to tax the income of the trust u/s 115TD of the Act.
5. The appellant craves leave to add, alter, amend or withdraw any ground/s of appeal on or before hearing of the appeal.”
The applicant trust filed the application for registration in Form 10AB under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961. The CIT(E) rejected the assessee’s application and also cancelled the provisional registration vide order dated 03-09-2024 on the ground that assessee failed to file documentary evidences.
Being aggrieved by the order dated 03-09-2024 passed by the CIT(E), the assessee filed appeal before us.
There is a delay of 201 days in filing the present appeal for which the assessee has given the affidavit for condonation of delay and the reason therein appears to be genuine, hence delay is condoned.
The A.R. requested the matter may be remanded back to the file of CIT(E) as the CIT(E) has not given the sufficient opportunities to the assessee to furnish the details called for.
The ld. D.R. relied upon the order of the CIT(E).
Matushree Parsanba Charitable Trust, A.Y. N.A.
We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has not mentioned whether notice was properly served to the applicant trust or not. In the interest of justice, it will be proper to remand back this matter to the file of the CIT(E) for proper adjudication of the issues on merit after verifying the details filed by the applicant trust. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice.
In the result, the appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open court on 04-11-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 04/11/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद