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Facts
The assessee trust filed an application for registration under Section 12A(1)(ac)(iii) of the Act. The CIT(E) dismissed the application as premature because the trust was not provisionally registered. The assessee contended that they inadvertently filed under the wrong sub-clause and were not given adequate opportunity of hearing.
Held
The Tribunal condoned the delay in filing the appeal. It held that the matter should be restored to the CIT(E) for de-novo consideration after providing due opportunity of hearing to the assessee.
Key Issues
Whether the CIT(E) rightly dismissed the application for registration without granting sufficient opportunity of hearing and whether the application was indeed premature.
Sections Cited
12A(1)(ac)(iii), 12A(1)(ac)(vi), 12A
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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: SHRI SIDDHARTHA NAUTIYAL & SHRI MAKARAND V. MAHADEOKAR
IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER (Assessment Year: N.A.) M V G Jaher Dharmik Trust, Vs. Commissioner of Income Ground Floor, B/S. Shantinanthji Tax (Exemption), Derasar, Vadali B.O., Alampur, Ahmedabad Kheda, Gujarat-387620 [PAN No.AAATM6586D] (Appellant) .. (Respondent) Appellant by : Shri Jainish Parikh, A.R. Respondent by: Shri Pushpendra Singh Chaudhary, CIT DR Date of Hearing 06.05.2025 08.05.2025 Date of Pronouncement 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 18.06.2024.
At the outset, we observe that the appeal is time barred by 63 days. The delay of 63 days is condoned on due consideration of facts and owing to smallness of delay causing no perceptible prejudice to other side.
The Assessee has taken the following grounds of appeal:-
“1. The order passed by CIT (Exemption) for rejecting 12AA if bad in law and deserved to be uncalled for. 2. The appellant craves to reserve his right to add, alter, amend or delete any ground of appeal during the course of hearing.”
MVG Jaher Dharmik Trust vs. CIT(E) Asst.Year –N.A. - 2– 4. The brief facts of the case are that the assessee / applicant trust filed application for registration under Section 12A(1)(ac)(iii) of the Act. However, the Ld. CIT(E) dismissed the application for registration on the ground that the aforesaid section is applicable only in case when the trust or institution has been “provisionally registered” under sub clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act. However, in this case neither such order of “provisional registration” has been submitted by the applicant trust nor it is found to be attached with Form No. 10AB, filed by the assessee / applicant trust. Accordingly, in absence of such provisional registration order Section 12A(1)(ac)(iii) of the Act, the application for registration under Section 12A was held by Ld. CIT(E) to be “premature” and “non- maintainable”. Accordingly, the application for grant of registration was dismissed by Ld. CIT(E).
Before us, the Counsel for the assessee submitted that at the time of filing of application for grant of registration, the assessee / applicant trust inadvertently filed application in sub-clause (iii) of Section 12A(1)(ac) instead of sub-clause (i) to Section 12A(1)(ac) of the Act. However, the Ld. CIT(E), without giving adequate opportunity of hearing to the assessee and giving only one date of hearing (i.e. 25.04.2024), dismissed the application filed by the assessee / applicant trust, against the principles of natural justice. Accordingly, the Counsel for the assessee submitted that the matter may be restored to the file of Ld. CIT(E) for de-novo consideration, in the interest of justice.
On going through the facts of the instant case, in the interest of justice, the matter is restored to the file of Ld. CIT(E) for de-novo MVG Jaher Dharmik Trust vs. CIT(E) Asst.Year –N.A. - 3– consideration, after giving due opportunity of hearing to the assessee / applicant trust to present it’s case on merits.
In the result, the appeal of the assesse is allowed for statistical purposes. This Order pronounced in Open Court on 08/05/2025
Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 08/05/2025 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,