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Facts
The assessee, Shree Mahuva Mota Mahajan Sarvajanik Trust, applied for registration under section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application due to discrepancies in the trust's name and failure to provide necessary details and explanations regarding the genuineness of its activities.
Held
The Tribunal held that the assessee-trust failed to submit requisite details despite notices. However, to serve the interests of justice, the matter was remanded to the CIT(E) for a fresh consideration of the application.
Key Issues
Whether the rejection of registration under Section 12AB was justified due to non-furnishing of details, and if a remand is appropriate to allow the assessee an opportunity to present its case.
Sections Cited
12AB, 10AB, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & MS SUCHITRA KAMBLE
O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: Delay Condoned This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad vide order dated 27.03.2023.
2. The assessee has raised the following grounds of appeal 1. The Ld. CIT(Exemption) has erred in law and on facts of the case in rejecting the application for registration u/s. 12AB of the Act.
ITA No. 2068/Ahd/2024 Asst.Year NA - 2–
The Ld. CIT(Exemption) has erred in law and on facts of the case in making a general observation about non furnishing of requisite details/documents despite furnishing all the details/documents called for and without even pointing out specific detail/document which is not furnished by the appellant.
3. The Ld. CIT(Exemption) has noticed the difference in name of the appellant as per the records of income tax department and Charity Commissioner, without appreciating the fact that the Appellant is one and the same.
4. The Ld. CIT(Exemption) has passed the order without properly appreciating the facts and he further erred in grossly ignoring various submissions, explanations and documentary evidence placed on record from time to time which ought to have been considered before passing the impugned order. The action of the CIT(Exemption) is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 5. 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 assessee is a Trust and had applied for registration under Form No.10AB of the Act. However, Ld. CIT(E) rejected the application filed in Form No.12AB of the I.T Act, 1961, due to discrepancies in the name of trust and assessee 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.
Asst.Year NA - 3– 5. At the outset, we noticed that inspite of notices issued, to submit the details/documents called for, the assessee-trust has not submitted any requisite details. Therefore, no verification of objects of the trust with regard to the genuineness of activities was carried out. Thus, the genuineness of the activities does not get established, due to lack of details/explanations submitted by the assessee-trust. 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.
In the result, the appeal of the assessee is allowed for statistical purposes.
This Order pronounced in Open Court on 16.04.2025