NAVYUG CHARITABLE SEVA SAMITI,AHMEDABAD vs. THE CIT (EXEMPTION), AHMEDABAD

Brief facts of the case is that the assessee is a charitable Trust and filed registration application u/s 12A(1)(ac)(iii) of the Act in Form 10AB along with supporting documents. The Ld. CIT(E) issued hearing notice on 03/07/2024 and on 06/08/2024 via email to furnish certain details/documents for granting registration. The assessee neither filed any submissions nor sought for any adjournments, therefore Ld. CIT(E) denied registration u/s. 12A of the Act, as he was not satisfied about genuineness of the activities of the trust and that the activities of the trust were in consonance with the objects of the trust.

The Ld. Counsel submitted that the assessee Trust is prepared to file all required documents before Ld. CIT(E) for registration and therefore requested to set aside the matter back to the file of Ld. CIT(E) for granting registration. The explanation of the assessee that communication was received on the email of the old management and that the new email was not updated is not found a reasonable explanation for non-compliance before the CIT(E). Therefore, we deem it fit to impose a cost of Rs. 5,000/- on the assessee, payable to the Income Tax Department within two weeks from the date of receipt of copy of this order. On production of receipt for payment of the cost, Ld. CIT(E) is directed to give one more opportunity of hearing to the assessee for registration in accordance with the provisions of law.

In the result, the appeal filed by the Assessee is allowed for statistical purpose.