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Facts
The assessee, a charitable trust, applied for final registration under Section 12A(1)(ac)(iii) and Section 12AB, but the CIT(E) rejected the application and cancelled provisional registration due to non-compliance with a notice. The assessee claimed the notice was overlooked due to an email error and an 88-day delay in filing the appeal was condoned by the Tribunal.
Held
The Tribunal noted that the CIT(E) had not considered the details submitted by the assessee. Consequently, the Tribunal remanded the case back to the CIT(E) for fresh adjudication on merits, directing the CIT(E) to verify the details and provide the assessee a fresh opportunity of hearing in accordance with natural justice principles.
Key Issues
Whether the CIT(E) erred in rejecting the assessee's application for final registration under Section 12A(1)(ac)(iii) and 12AB without considering all submitted details and providing an adequate hearing, thus warranting a remand for fresh adjudication.
Sections Cited
12A(1)(ac)(iii), 12AB, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: MS. SUCHITRA R. KAMBLE & MAKARAND V.MAHADEOKAR
आदेश आदेश/O R D E R आदेश आदेश
PER MAKARAND V.MAHADEOKAR, AM:
This appeal has been preferred by the assessee against the order passed by the Commissioner of Income-tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(Exemption)”], dated 23.08.2024 whereby the learned CIT(Exemption) rejected the assessee’s application filed in Form No. 10AB under section 12A(1)(ac)(iii) of the Income-Tax Act, 1961 [hereinafter referred to as “the Act”] for grant of registration under section 12AB and also cancelled the provisional registration earlier granted to the assessee under the said provision.
The ground raised by the assessee in appeal reads as under:
2 1. That the CIT(Exemption) erred in rejecting the application made in Form No. 10AB seeking final registration of a charitable trust u/s 12A(l)(ac) of the Act merely because notice dt. 5-8-2024 could not be complied with. It is submitted that the non-compliance was only on account of notice of hearing received in an email having been overlooked by the husband of the President of the Trust and consequential non-communication of the same to the President of the Trust for further compliance. It is submitted that the Trust has been genuinely carrying on charitable activities and is eligible for being registered u/s 12A(l)(ac) of the Act and, hence, the unintentional omission to comply with the notice be condoned and the CIT(Exemption) be directed to give a fresh opportunity of hearing and then grant final registration after necessary verification.
The applicant/appellant filed application for registration of the trust in Form 10AB under Sub-clause (iii) of clause (ac) of sub-section (1) of Section 12A of Income Tax Act, 1961. The said application was rejected and provisional registration was also cancelled by the CIT(E) vide order dated 23.08.2024.
Being aggrieved by the said order dated 23.08.2024 the applicant/appellant filed appeal belatedly by 88 days. The Ld. AR submitted that after filing of application for registration under Section 12A of the Income Tax Act, 1961, in some of the notices were issued the applicant/appellant submitted party details vide reply dated 29.06.2024 but overlooked the order received in email by the husband of the President of the Trust. Therefore, there was a delay in filing the present appeal. Thus, the delay in filing the present appeal is not deliberate. Hence, delay is condoned.
From the submissions of both the Ld. AR and Ld. DR as well as from the records it appears that the applicant/appellant has filed details before the CIT(E) but said details were not considered at all. The Ld. AR requested that the 3 applicant/appellant be allowed to file the details and also be granted hearing, therefore, prayed that the matter may be remanded back to the file of CIT(E) for fresh adjudication. Therefore, it will be appropriate to remand back this matter to the file of the CIT(E) for verifying the details filed by the applicant/appellant and decide/adjudicate the matter a fresh on merit and as per Income Tax Statute. Needless to say, the applicant be given opportunity of hearing by following principles of natural justice. Thus, the appeal of the applicant/appellant is partly allowed for statistical purpose.
In result, appeal of the applicant/appellant is partly allowed for statistical purpose.
Order pronounced in the Court on 17th October, 2025 at Ahmedabad.