Loading judgment…
Facts
The appellant, a charitable trust, applied for regular registration under Section 12A. The CIT(Exemption) rejected the application, citing a wrong sub-clause in Form 10AB, without providing sufficient opportunity to the appellant.
Held
The Tribunal held that the CIT(Exemption) failed to provide sufficient opportunity to the appellant and erroneously rejected the application based on a minor technicality, ignoring the trust's prior registration.
Key Issues
Whether the CIT(Exemption) erred in rejecting the registration application for a technical error without providing adequate opportunity. Whether the matter should be remanded for proper adjudication.
Sections Cited
12AB, 12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH, AHMEDABAD
PER SUCHITRA KAMBLE, JUDICIAL MEMBER:
This appeal is filed by the Appellant/Assessee against order dated 17.10.2024 passed by the CIT(Exemption), Ahmedabad.
The assessee has raised the following grounds of appeal :-
“1. The Learned Commissioner of Income Tax Exemption erred in law and in fact in denying the registration u/s.12AB of The Income Tax Act, 1961.
2. The Learned Commissioner of Income Tax Exemption erred in law and in fact in passing an order in Form 10AD rejecting application filed in Form No.10AB simply on account of quoting wrong sub clause i.e. sub- clause (ii) in place of sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961.
The Learned Commissioner of Income Tax Exemption be directed to rectify the order passed on 28.03.2022 vide form 10AC granting The Mahila Gramodhyog and Sishuvikas Trust vs. CIT(E) Page 2 of 3
Provisional Registration since the trust was as on date of making application was already registered u/s.12A/12AA and the said facts were in the knowledge of Respondent as Assessee has supplied all details as attachment in Form 10A filed vide Acknowledgment No. 394130910210322 on 21.03.2022.
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.”
3. The appellant Trust is Charitable Trust incorporated on 16.11.2003 and was registered with the Charity Commissioner on 03.01.2004. The Appellant Trust was granted registration u/s.12A(a) of the Income Tax Act, 1961 vide order dated 21.12.2005 w.e.f. 01.04.2005. The Appellant Trust was also registered u/s.80G(5) of the Act vide Certificate issued in the year 2015 in consonance with the application of the Appellant Trust dated 30.07.2014. Consequent to the Amendment in Income Tax Act, the Appellant Trust applied for registration by filing Form 10A on 21.03.2022 and the provisional registration was granted vide Form 10AC on 28.03.2022 for a period from A.Y. 2022-23 to A.Y. 2024-25. Thereafter the Appellant Trust also applied for seeking registration u/s.80G by filing Form 10A on 28.03.2022 and was granted provisional registration on 05.04.2022 for a period from 05.04.2022 to A.Y. 2024-25. Thereafter, the Appellant Trust filed Form 10AB under sub-clause (ii) of clause (ac) of sub-section (1) of Section 12A on 03.05.2024 and applied for regular registration. Notice dated 13.09.2024 was issued at the email address. The Appellant Trust failed to respond the same, hence the CIT(E) passed order dated 17.10.2024 thereby rejecting application filed in Form No.10AB.
4. At the time of hearing, the Ld. AR submitted that the CIT(Exemption) has not given sufficient opportunity to the Appellant Trust to present the case. Hence, the Ld. AR submitted that the matter may be remanded back for proper adjudication of the issues, after verifying the documents by the CIT(Exemption).
The Ld. DR relied upon the order of the CIT(Exemption).
We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(Exemption) has issued only one notice. Besides this, the CIT(E) rejected the application of the Appellant Trust The Mahila Gramodhyog and Sishuvikas Trust vs. CIT(E) Page 3 of 3 only on the ground that application filed in Form 10AB is under wrong sub-clause of Section 12A of the Act, ignoring the fact that the Appellant Trust was granted the registration on 21.12.2005 w.e.f. 01.04.2005 itself. The CIT(E) has not given sufficient opportunity to the Appellant Trust to present its case. Thus, the matter is remanded back to the file of the CIT(Exemption) for proper verification of the details filed by the Appellant Trust and adjudicate the same as per Income Tax Act. The assessee be given opportunity of hearing by following the principles of natural justice.
In the result, appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open Court on this 12th March, 2025.