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Facts
The assessee trust filed an application for registration under Section 12A. The Ld. CIT(E) sought details and documents, but the assessee submitted an incomplete response. Consequently, the CIT(E) rejected the application.
Held
The Tribunal restored the matter to the file of the Ld. CIT(E) for de-novo consideration, allowing the assessee an opportunity to comply with the notices. The CIT(E) is free to pass orders based on available material if non-compliance persists.
Key Issues
Whether the CIT(E) was justified in rejecting the registration application for non-compliance, and if the assessee should be granted another opportunity to submit required details.
Sections Cited
12A, 10AD, 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL
O R D E R
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 24.12.2024.
2. The Assessee has taken the following grounds of appeal:-
“1. The Ld. CIT erred in law and in the facts of the case in rejecting the application for registration u/s 10AD of the act.
The Ld. CIT erred in law and in the facts of the case in rejecting the provisional registration which was granted earlier.”
The brief facts of the case are that the assessee filed application for grant of approval under Section 12A of the Act in Form No. 10A, for the impugned year under consideration. In response to the application filed by the assessee / applicant trust, Ld. CIT(E) asked the assessee to provide certain Shri Chintamani Education Charitable Trust vs. CIT(E) Asst.Year –N.A. - 2– details / documents vide notices dated 13.08.2024 and 09.10.2024. However, Ld. CIT(E) observed that in response to the said notices, the assessee vide it’s reply dated 24.10.2024 only submitted an excel sheet with no relevant details as called for. Accordingly, Ld. CIT(E) dismissed the application for grant of approval with the following observations:
“7. As discussed above, the applicant/assessee has failed to file documentary evidences to enable me to satisfy about: i. Genuineness of the activities of the trust or institution. ii. That the activities of trust or institution are in consonance with the objects of the trust or institution. iii. That other laws material for the purpose of achieving objects are complied with.
In view of the above, the present application filed in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act is rejected and also your provisional registration stands cancelled.”
Before us, the Counsel for the assessee submitted that in this case admittedly, there was lapse on the part of the assessee / applicant trust in complying with the notices by Ld. CIT(E) and the assessee / applicant trust could not file the requisite details as called for by Ld. CIT(E). However, the Counsel for the assessee submitted that if given an opportunity, then the assessee / applicant trust shall duly comply with notices of hearing issued by Ld. CIT(E) and file necessary details as called for in support of it’s application.
Accordingly, looking into the instant facts, the matter is hereby directed to be restored to the file of Ld. CIT(E) for de-novo consideration. However, we make it clear that in case there is further non-compliance on the part of the assessee / applicant in response to notices issued by Ld. CIT(E)
Shri Chintamani Education Charitable Trust vs. CIT(E) Asst.Year –N.A. - 3– then he would be at liberty to pass appropriate orders, in accordance with law, on the basis of material available on record.
In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 26/05/2025
Sd/- Sd/- (DR. BRR KUMAR) (SIDDHARTHA NAUTIYAL) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 26/05/2025 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 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,