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Facts
The assessee, a Trust, applied for registration under Form No.10AB of the Income Tax Act. The CIT(E) rejected this application, citing it as non-maintainable because an earlier application had been rejected, without addressing the merits of the current application.
Held
The Tribunal decided to remand the case back to the CIT(E) for fresh consideration of the application. The tribunal observed that rejection based solely on a prior rejection, without a merits-based assessment or providing an opportunity of being heard, was not appropriate and prejudiced the assessee.
Key Issues
Whether the CIT(E) was justified in rejecting an application for registration under Section 12A solely on the ground that an earlier application was rejected, without considering the merits or providing a show cause notice and opportunity of being heard.
Sections Cited
12A, 12A(1)(ac)(ii), 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:
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Delay Condoned This appeal is filed by the Assessee against the appellate order dated 16.12.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year NA.
The assessee has raised the following grounds of appeals:
The learned Commissioner of Income Tax (Exemptions), Ahmedabad ("the CIT") erred in fact and in law in rejecting the application made u/s/ 12A(1)(ac)(iii) of the Income Tax Act, 1961. Shravan Sera Foundation Vs. CIT Asst. Year : NA - 2–
The leamed CIT erred in fact and in law in rejecting the application u/s 12A of the Act merely on the ground that earlier application was rejected without going into the merits of the case which is had in law.
The learned CIT erred in fact and in law in passing the order rejecting the application for registration w/s. 12A of the Act without giving a show cause notice for rejection to the Appellant.
The learned CIT erred in fact and in law in passing the order rejecting the application for registration u/s. 12A of the Act without giving a opportunity of being heard.
The Appellant reserves the right to add, alter, amend, modify, delete all or any of the grounds of appeal either partially or completely.
The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. However, Ld. CIT(E) rejected the application u/s.12A(1)(ac)(ii) of the Act, as non- maintainable.
Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
At the outset, we find that the Ld.CIT(E) has rejected the application u/s.12A of the Act merely on the ground that earlier application was rejected therefore the current application is not maintainable. Ld.CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanation and submission 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. Asst. Year : NA - 3–
In the result, the appeal filed by the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 03.07.2025 (SIDDHARTHA NAUTIYAL) VICE-PRESIDENT () Ahmedabad; Dated 03.07.2025 MV
आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : अपीलाथ" / The Appellant 1. 2. ""थ" / The Respondent. 3. संबंिधत आयकर आयु" / Concerned CIT 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file.
आदेशानुसार/ BY ORDER,सहायक पंजीकार (Dy./Asstt.