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Facts
The assessee, a Public Charitable Trust, filed an application for registration under Section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application ex-parte without appreciating the facts and law, leading the assessee to file an appeal.
Held
The Tribunal held that the CIT(Exemption) failed to consider the evidence filed by the applicant trust and also the additional evidence. Therefore, the matter was remanded to the CIT(Exemption) for fresh consideration.
Key Issues
Whether the CIT(Exemption) erred in rejecting the application for registration ex-parte without considering all the evidence and violating principles of natural justice.
Sections Cited
12AB, 2(15), 12A(1)(ac)(iii), 12AB(i)(b)
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Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Dr. B.R.R. Kumar & Ms. Suchitra Kamble
आदेश/ORDER
Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 13-11- 2024 passed by the CIT(Exemption), Ahmedabad for assessment year N.A.
The grounds of appeal
are as under:-
1. The Ld. CIT(E) has erred in law and on facts of the case in rejecting the application for seeking registration of the trust u/s. 12AB of the Act ex-parte in violation of principles of natural justice.
Lightship Initiative Charitable Trust, A.Y. N.A. 2. The Ld. CIT(E) has passed the order without appreciating the facts and law in its proper perspective. The action of the CIT(E) is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 3. The Appellant craves leave to add, amend, alter edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.”
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 20.06.2024 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 13-11-2024. 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 20.06.2024. The Ld. AR also filed the additional evidence on behalf of the applicant trust before the Tribunal stating therein that the notices was not responded by the earlier Chartered Accountant and hence, could not file the said documents. 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 Lightship Initiative Charitable Trust, A.Y. N.A. all considered the evidence filed by the applicant trust. Besides this the applicant trust has also filed the additional evidence which are admitted and the same should be taken into account while considering the application of the trust for registration under Section 12A(1)(ac)(iii) of the Act. 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 22-04-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 22/04/2025 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