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Facts
The assessee, a Trust, applied for registration under Form No.10AB. The Ld. CIT(E) rejected the application for registration under section 12A(1)(ac)(iii) for failure to furnish requisite details and establish genuineness of activities.
Held
The Tribunal held that the interests of justice would be served by remanding the matter back to the Ld. CIT(E) for fresh consideration of the application, taking into account submissions and explanations from the assessee.
Key Issues
Whether the rejection of registration application by CIT(E) without proper hearing and for want of details is justified. Whether the matter should be remanded for fresh consideration.
Sections Cited
12A, 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, “B” 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:-
Delay Condoned The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 13.11.2024..
The assessee has raised the following grounds of appeal: Asst. Year : NA - 2–
1. The learned CIT(E) has erred in law and on facts of the case, in rejecting the application for approval under section 12A of the Act without hearing and for want of details.
2. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise.
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 order 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 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. Asst. Year : NA - 3–
In the result, the appeal of the assessee is allowed for statistical purposes.