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Facts
The assessee, a Trust, applied for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected these applications ex-parte for failure to provide necessary details and justifications.
Held
The Tribunal found that the assessee was not granted sufficient opportunity and that remanding the matter back to the CIT(E) for fresh consideration would serve the interest of justice. The orders of the CIT(E) were set aside.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration and approval without providing adequate opportunity for hearing and submission of details.
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii), 12A(1)(ac), 80G(5)
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER (Assessment Year: NA) Moritha Lions Charitable Trust, Commissioner of Income Vs. 272, Vaghiya Faliyu, Tax, (Exemption, At PO Moritha, Ahmedabad Mandvi, Surat-394160 [PAN : AAFTM8749 M] (Appellant) .. (Respondent) Appellant by : Shri Mehul K Patel, AR Respondent by: Shri Rignesh Das, CIT. DR Date of Hearing 01.05.2025 Date of Pronouncement 06.05.2025 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 passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 13.11.2024 & 15.11.2024. Since the issues involved in these two appeals are identical and common, we take the grounds of appeal raised in for the purpose of adjudication and the decision in the said appeal will also apply to the other appeal.
2. The assessee has raised the following grounds of appeal: -238/Ahd/2025 Moritha Lion Charitable Trust. Vs.CIT(E) Asst. Year : N.A - 2–
1. That on facts, CIT (Exemption) has and in law, the grievously erred learned in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for registration u/s 12A(1) (ac) (iii) of the Act, vide ex-parte order.
2. That on facts and in law, the application made u/s 12A (1) (ac) (iii) of the Act ought to have been granted by learned CIT (Exemption) as prayed for.
3. The appellant craves liberty to add, alter, amend any ground of appeal.
3. The assessee has raised the following grounds of appeal:
1. That on facts, CIT (Exemption) has and in law, grievously the erred learned in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for approval u/s 80G(5) (iii) of the Act, vide ex-parte order.
2. That on facts and in law, the application made u/s 80G(5) (iii) ought to have been granted by learned CIT (Exemption) as prayed for.
3. The appellant craves liberty to add, alter, amend any ground of appeal.
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 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 that the assessee-trust Moritha Lion Charitable Trust. Vs.CIT(E) Asst. Year : N.A - 3– has neither filed any submission nor sought any adjournment. 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(A) 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.238/Ahd/2025 for fresh consideration.
In the result, both the appeals of the assessee are allowed for statistical purposes.