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Facts
The assessee, Bhargvi Education Trust, applied for registration under Section 12A(1)(ac)(iii) and Section 80G of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected the application due to the inadvertent omission of submitting self-certified copies of the Trust Deed and School Permission Certificate, and failure to furnish other requisite details.
Held
The Tribunal held that the rejection of the application was primarily based on the omission of documents without considering the absence of malafide intent and principles of natural justice. Therefore, the matter was remanded to the CIT(E) for fresh consideration after providing an opportunity to the assessee.
Key Issues
Whether the rejection of registration under Section 12A and 80G for procedural lapses without considering principles of natural justice and bona fide intent warrants a remand for fresh consideration.
Sections Cited
12A(1)(ac)(iii), 80G, 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-Ms SUCHITRA KAMBLE
O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
These two appeals have been filed by the Assessee against the separate orders dated 21.12.2024 & 23.12.2024 passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad, relating to the Assessment Year NA. 2. The assessee has raised the following grounds of appeals: -390/Ahd/2025 Bhargvi Education Trust vs. CIT Asst. Year : NA - 2–
1. The Ld.CIT(E) erred in law and on facts in rejecting the application seeking registration under Section 12A(1)(ac)(iii) of the Act, without properly appreciating the facts and law of the case. The rejection was based solely on the inadvertent omission of submitting self certified copies of the Trust Deed and the School Permission Certificate, despite the absence of any malafide intent.
2. The order passed under Section 12A(1)(ac)(iii) suffers from a violation of the principle of natural justice, as no reasonable opportunity was provided to the appellant to rectify the inadvertent omission of submitting self-certified copies of the Trust Deed and the school permission Certificate.
3. The appellant craves liberty to add, amend, or alter any or all of the grounds of appeal on or before the date of hearing.
3. The assessee has raised the following grounds of appeals:
The Ld.CIT(E) erred in law and on facts in rejecting the application for registration under Section 80G of the Act, without duly considering the facts and legal position of the case. The rejection was solely on account of the absence of valid registration under Section 12A 2. (1)(ac)(iii) of the Act, without taking into account the appellants bona fide intent. 3. The order passed under Section 80G violates the principles of natural justice, as no proper opportunity was provided to the appellant to rectify the issue o furnish relevant documents to substantiate eligibility for registration under Section 80G. 4. The appellant craves liberty to add, amend, or alter any or all of the grounds of appeal on or before the date of hearing.
The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the I.T Bhargvi Education Trust vs. CIT Asst. Year : NA - 3– Act, 1961, since the assessee-trust failed to submit any details/explanation and genuineness of the activities of the Trust.
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 the assessee-trust failed to furnish requisite details/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.
Since we have remanded the issue to the Ld.CIT(E) in against rejecting of application u/s.12A(1)(ac)(iii) of the Act, we also set-aside the issue for approval of registration u/s.80G(5)(iii) of the Act in ITA No.390/Ahd/2025 for fresh consideration. -390/Ahd/2025 Bhargvi Education Trust vs. CIT Asst. Year : NA - 4– 8. In the result, both the appeals of the assessee are allowed for statistical purposes.