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Facts
The assessee, a Public Charitable Trust, filed an application for registration under section 12AB of the Income Tax Act, 1961. The CIT(Exemption) rejected the application without considering the submitted documents and by treating non-response to email notices as non-compliance.
Held
The Tribunal held that the CIT(Exemption) had not considered the evidence filed by the applicant. Therefore, the matter was remanded back to the CIT(Exemption) for fresh consideration and to grant an opportunity of hearing.
Key Issues
Whether the CIT(Exemption) rightly rejected the application for registration without considering the evidence and granting adequate opportunity to the assessee.
Sections Cited
12AB, 2(15), 12A(1)(ac)(iii), 115TD, 12AA
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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Ms. Annapurna Gupta & Ms. Suchitra Kamble
आदेश/ORDER Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 13-11- 2024 passed by CIT(Exemption), Ahmedabad for assessment year N.A.
The grounds of appeal are as under:- “1.1 The learned CIT(Exemption) erred in law and on facts in rejecting the appellant's application for registration under section 12AB of the Income Tax Act. 1961 by order dtd: 13.11.2024. 1.2 The learned CIT (Exemption) erred in cancelling the provisional registration granted to the appellant under section 12AB(1)(c) without providing sufficient and specific opportunity to the appellant to present its case. Therefore, the appellant shall be granted opportunity to produce additional evidences. 1.3 The learned CIT (Exemption) erred in treating non-response to email notices as non-compliance when Shree Umiya Patidar Seva Charitable Trust, A.Y. N.A. (a) The trustees had already demonstrated their compliance by submitting all required documents with Form 10AB.
(b) The inability to respond to notices was due to practical difficulties in accessing email, not willful non-compliance.
(c) The trust has consistently maintained transparency in its operations.
1.4 The learned CIT (Exemption) erred in rejecting the application solely on the ground of non-submission of a note on activities and other unspecified details, without:
(a) Considering the documents already submitted with the Form 10AB application (b) Examining the objects and activities mentioned in the trust deed (c) Verifying the financial statements and other documents on record
1.5 The learned CIT(Exemption) failed to appreciate that mere non-submission of additional information within the short time provided does not justify rejection of registration under section 12AB, especially when provisional registration was already granted earlier.
1.6 Without prejudice to the above, the learned CIT (Exemption) erred in directing computation of tax liability under section 115TD without appreciating that said provision is not applicable in case of rejection of application for registration.
It is therefore prayed that the appellant may please granted registration u/s 12AA in the interest of natural justice considering the eccentric facts of the case.”
The facts of the case are that the applicant is a Public Charitable Trust and the activities of the trust are charitable within the meaning of section 2(15) of the I.T. Act. The applicant trust filed the application in Form 10AB on 29.06.2024 for registration u/s. 12A(1)(ac)(iii) of the Income Tax Act, 1961. Notices were issued from time to time requesting to furnish details/documents. The CIT(E) rejected the application of the applicant vide order dated 13- 2 Shree Umiya Patidar Seva Charitable Trust, A.Y. N.A. 11-2024. Aggrieved by the order of the CIT(E), the applicant trust filed appeal before the Tribunal.
At the outset, the Ld. A.R. submitted that the CIT(E) has rejected the application for renewal of Exemption u/s. 12AB(i)(b) of the Act of the assessee without considering the evidence which has already been filed along original Form 10AB application on 29.06.2024. Therefore, Ld. A.R. submitted that the matter may be remanded to then CIT(E) for proper adjudication. The CIT-D.R. relied upon the order of the CIT(E).
We have heard both the parties and perused all the relevant record. It is pertinent to note that the CIT(E) has not at all considered the evidence filed by the applicant trust. Hence, it will be appropriate to remand the matter to the file of the CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the evidences filed by the applicant trust. The applicant trust be given opportunity of hearing by following principles of natural justice.
In the result, the appeal of the applicant trust is allowed for statistical purposes.
Order pronounced in the open court on 29-04-2025 Sd/- Sd/- (Annapurna Gupta) (Suchitra Kamble) Accountant Member Judicial Member Ahmedabad : Dated 29/04/2025 3 Shree Umiya Patidar Seva Charitable Trust, A.Y. N.A. 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