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Facts
The assessee, a Public Charitable Trust, filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected the application without providing adequate opportunity of being heard and considering the submitted evidence.
Held
The Tribunal held that the CIT(E) failed to consider the evidence submitted by the applicant and did not provide a proper opportunity of hearing, violating principles of natural justice. The matter was remanded to the CIT(E) for fresh consideration.
Key Issues
Whether the CIT(E) erred in rejecting the application without considering evidence and providing a proper hearing, and if the matter should be remanded for proper adjudication.
Sections Cited
12A(1)(ac)(iii), 2(15), 12AB(i)(b), 12A
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Dr. BRR 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 CIT(Exemption), Ahmedabad for assessment year N.A.
The grounds of appeal are as under:- “1. On the facts and circumstances and Law, the impugned order issued 12A(1)(ac)(iii) of the act is arbitrarily illegal and bad in law.
2. The learned CIT(E) failed to appreciate that the appellant fulfills all the conditions listed out in section 12A of the Act.
Shree Modi Samaj Ras Rotli Samiti Deesa, A.Y. N.A.
3. On the facts and circumstances the CIT(E) has not provided any adequate opportunity of being heard and passing a non-speaking order in violation of judicial precedents. The trust may be granted for one more opportunity to prove the genuineness of the activities.
4. The appellant humbly craves leaves to add, alter or delete all or any of the ground of 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 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 13-11-2024. 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 2 Shree Modi Samaj Ras Rotli Samiti Deesa, A.Y. N.A. 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