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Facts
The assessee trust was granted provisional registration under Section 12(1)(ac)(vi) and later applied for final registration under Section 12A(1)(ac)(iii). The CIT(E) rejected the application and cancelled the provisional registration, citing Section 13(1)(b) due to the trust's charitable nature benefiting a specific community.
Held
The Tribunal noted that the assessee was not given a proper opportunity to present its case before the CIT(E). Therefore, the matter was remanded back to the CIT(E) for proper adjudication after providing a hearing to the assessee and considering their submissions and evidence.
Key Issues
Whether the assessee was denied a proper opportunity of being heard by the CIT(E) before cancellation of registration, and if so, whether the case should be remanded.
Sections Cited
12A, 12(1)(ac)(vi), 12A(1)(ac)(iii), 13(1)(b), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH
Before: Dr. BRR Kumar & Ms. Suchitra Kamble
आदेश/ORDER Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 26-03- 2024 passed by CIT(Exemption), Ahmedabad for assessment year N.A.
The grounds of appeal
are as under:- “1. The Learned C.I.T. (Appeals) has erred in law and on facts of the case in cancelling the provisional registration granted under section 12A.
2. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise.”
Shri Visnagar Vanik Samaj Vadodara, A.Y. N.A.
The assessee trust was granted provisional registration u/s. 12(1)(ac)(vi) of the Income Tax Act on 03-09-2022 w.e.f. assessment year 2023-24 to 2025-26. The trust applied for final registration u/s. 12A(1)(ac)(iii) of the Income Tax Act on 28-09-2023. The application for final registration was rejected by the CIT(E) on the ground that the provisions of section13(1)(b) would be applicable as the assessee is restricted its nature of charity to the benefit of particular religious community or cast and its members/people vide order dated 26-03-2024 and thus rejected the application of the assessee as well as cancelled the provisional registration granted earlier.
Being aggrieved by the order u/s. 12AB dated 26-03- 2024 passed by the CIT(E), the assessee preferred appeal before the Tribunal.
There is a delay of 202 days in filing the present appeal for which the assessee has filed application for condonation of delay thereby stating that the president of the trust got changed and the earlier tax consultant has not given a proper information and hence the appeal could not be filed within the stipulated period. The reason for delay appears to be genuine and therefore the delay is condoned.
The ld. A.R. submitted that the matter may be remanded back to the file of CIT(E) as the assessee has not got opportunity to file the submissions or represent the case before the CIT(E).
Shri Visnagar Vanik Samaj Vadodara, A.Y. N.A.
The ld. D.R. relied upon the order of the CIT(E).
We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the assessee has not been given proper opportunity to file the details of trust as well as their representations before the CIT(E) by way of hearing. Therefore, it will be appropriate to remand back this matter to the file of the CIT(E) for proper adjudication of the issues after giving hearing to the assessee as well as taking cognizance of the submissions and evidences filed before the CIT(E) as per Income Tax Act.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 07-05-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 07/05/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद