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Facts
Two assessee trusts applied for registration under Form 10AB and Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, and Section 80G(5). The Ld. CIT(E) rejected their applications, citing non-furnishing of requisite details, inability to establish genuineness of activities, and a violation of Section 80G(5) due to their charitable-cum-religious nature.
Held
The Tribunal observed that the CIT(E) rejected the applications for lack of substantial documents. Upon the assessee's request for another opportunity, the Tribunal remanded the cases back to the Ld. CIT(E) for fresh consideration, directing the CIT(E) to take into account all submissions and explanations provided by the assessees.
Key Issues
Whether the CIT(E) was justified in rejecting the trusts' applications for registration under Section 12A(1)(ac)(iii) and Section 80G(5) due to failure to furnish documents and alleged violation of trust conditions.
Sections Cited
80G(5), 80G(5)(ii), 80G(5B), 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
These two appeals have been filed by the different assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, both dated 29.12.2024. Since the issues & 340/Ahd/2025 Asst. Year : N.A - 2– raised in these appeals are interconnected, we consider it appropriate to reproduce the grounds of appeal in ITA No.339/Ahd/2025 .
2. The assessee has raised the following grounds of appeal:
“…1. The order passed by Ld.CIT(Exemption) is bad in law and required to be quashed.
Ld.CIT (Exemption) erred in rejecting application for registration u/s.80G(5) of the Act by observing that trust is charitable cum religious trust and thus violated provision of section 80G(5)(ii) & 80G(5B) of the Act.
3. Ld.CIT(Exemption) ought to have considered the fact and activities of the trust and ought to have granted registration.
4. Without prejudice to the above and in alternative, Appellant trust pray to set aside the case with direction to verify activities of the trust and ought to have granted registration…”
The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB under the provisions of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, on the ground that the assessee-trust failed to furnish the requisite details/explanation and to establish the genuineness of its activities.
Aggrieved by the orders of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld. CIT(E) rejected the & 340/Ahd/2025 Asst. Year : N.A - 3– application of the assessee on the ground that that the assessee-trust failed to furnish substantial documents. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld. CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.
In the result, both the appeal of the assessee are allowed for statistical purposes.