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Facts
The assessee filed applications for final registration under Section 12A and approval under Section 80G, which were rejected by the CIT(E) on grounds of not submitting documentary evidence and non-consonance with the trust's objects. The assessee claimed notices were not accessed due to digital communication difficulties of a senior citizen trustee.
Held
The Tribunal found that the CIT(E) passed ex-parte orders without proper examination of the submitted documents and without giving adequate opportunity to the assessee. The Tribunal set aside the orders and restored the matter to the CIT(E) for fresh decision.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration/approval without affording proper opportunity of hearing and without considering all submitted documents.
Sections Cited
12A, 80G, 12A/80G
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA
Per Sanjay Garg, Judicial Member
The captioned appeals have been preferred by the assessee against separate orders passed by the Ld.Commissioner of Income- Tax (Exemption), Ahmedabad [hereinafter referred to as “ld.CIT(E)]. is against the order of the ld.CIT(E) dated 13.11.2024 rejecting the application of the assessee for final/regular registration under section 12A of the Income Tax Act, 1961 (for short “the Act”) whereas the ITAT No.254/Ahd/2025 is against the order of the ld.CIT(E) dated 15.11.2024 rejecting the application of the assessee for final/regular approval under section 80G of the Act.
& 254/Ahd/2025 2 3. At the outset, the ld.counsel for the assessee submitted that the reasons for rejection of assessee’s applications for registration/approval under section 12A/80G of the Act were on the ground that the assessee had failed to file documentary evidences to demonstrate genuineness of the activities of the trust/institution and that the activities of the trust are in consonance with the object of the trust. It has been contended that the notices issued by the ld.CIT(E) on 12.8.2024 and 8.10.2024 could not be accessed as the in-charge trustee being a senior citizen, has very limited familiarity and experience with digital communication, and has practical difficulties in regularly accessing and monitoring email accounts. That the assessee became aware of the above stated notice by the ld.CIT(E) only after considerable delay, which was attributable to the reasons beyond the control of the assessee. The ld.counsel for the assessee submitted that the Commissioner has rejected the application of the assessee solely on the ground of non-submission of a note on activities and other details, without considering the fact that the relevant documents were already submitted with the Form No.10AB. Further, that the ld.CIT(E) did not examine the objects and activities of the trust and did not verify the financial statements and other documents which were already on record. It has, therefore, been contended that the ex parte order of the ld.CIT(E) in rejecting the applications of the assessee-trust is not justified, especially when the provisional registration/approval was already granted.
The ld.counsel for the assessee submitted that the assessee may be given an opportunity to present its case, since the assessee has a fair case on merits, as the assessee has already been granted provisional approval/registration, and there was no reason for non- grant of regular/approval/registration.
The ld.DR, on the other hand, has relied on the order of the ld.CIT(E).
Considering the above submissions of the assessee, in our view, interests of justice will be well served, if the assessee is given an opportunity to present its case before the ld.CIT(E). Accordingly, we set aside the impugned exparte orders of the ld.CIT(E) and restore the matter to the file of the ld.CIT(E) for decision afresh on the applications of the assessee, after providing due opportunity of hearing to the assessee. The assessee is also directed to actively participate in the proceedings before the ld.CIT(E) and furnish the necessary documents/evidences as may be required to substantiate its case during the proceedings.
In the result, both the appeals of the assessee stand are treated as allowed for statistical purposes. Order pronounced on 17th June, 2025.