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Facts
The assessee, a trust, had applied for renewal of its registration under section 12A(1)(ac) of the Income Tax Act, 1961. Despite notices, the assessee failed to furnish required details and documents, leading to the rejection of its application and cancellation of provisional registration by the CIT(E).
Held
The Tribunal held that while the assessee did not comply with the notices, interests of justice would be served by remanding the matter to the CIT(E). The CIT(E) was directed to reconsider the application afresh, taking into account the submissions made by the assessee.
Key Issues
Whether the CIT(E) was justified in rejecting the registration application and cancelling provisional registration due to non-compliance, and if the matter should be remanded for fresh consideration.
Sections Cited
12AB(1)(b)(ii), 12A(1)(ac), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & MS SUCHITRA KAMBLE
IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & MS SUCHITRA KAMBLE, JUDICIAL MEMBER (Assessment Year: NA) Shree Rakoliya Dave Parivaar Vs. The Commissioner of Kuldevi Trust Rajkot, Income Tax(Exemption) C/o. Sarda & Sarda(CA), Ahmedabad. Sakar 1st Floor, Dr. Radha-Krishnan Road, Opp. Rajkumar College, Rajkot-360001. [PAN No.AAVTS5676F] (Appellant) .. (Respondent) Appellant by : Shri Vimal Desai, AR Respondent by: Shri V Nandakumar, CIT.DR Date of Hearing 13.03.2025 Date of Pronouncement 18.03.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad vide order dated 22.10.2024.
The assessee has raised the following grounds of appeal
The order u/s.12AB(1)(b)(ii) of the Act is bad in law.
Asst.Year NA - 2– 2. The learned CIT(Exemption) has erred in law as well as on facts in rejecting the application for registration u/s.12A(1)(ac) of the Act and cancelling provisional registration.
The assessee is a Trust and Registered with the office of Charity Commissioner with effect from 20.11.2017. The assessee-trust is also provisionally registered under section 12A(1)(ac) of the Income tax Act, 1961 in accordance with the provisions of section 12AB of the Income-tax Act, 1961. The assessee-trust has duly get is books of account audited and has regularly filed its return of income from time to time reporting therein the details of activities, income and its application. The assessee-trust has applied for renewal of its registration u/s.12A(1)(ac) vide online application in Form No.10AB. In this regard, several notices were issued to the assessee-trust requesting to furnish details/documents. In pursuance to the same, the assessee-trust remains un- complied, and the details/documents called for were also not submitted. Hence, the Ld.CIT(E) rejected the application for registration u/s.12A(1)(ac) of the Act and also cancelled the provisional registration.
Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
At the outset, the Ld. Counsel for the assessee submitted that the Ld.CIT(E) has rejected the application and Asst.Year NA - 3– cancelled the provisional registration of the assessee-trust due to non-compliance. The Ld.AR further submitted that owing to unforeseen situation due compliance before the Ld.CIT(E) could not be made. Therefore, prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee needs to furnish the proof of filing the 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 filed by the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.