Loading judgment…
Facts
The assessee, a charitable trust, applied for registration under Section 12AB. The CIT(Exemption) rejected the application and cancelled the provisional registration, citing the trust's failure to respond to notices and verify the genuineness of its activities.
Held
The Tribunal held that the CIT(Exemption) did not provide sufficient opportunity to the appellant and failed to consider the documents submitted. The notices issued by the CIT also lacked dates. Therefore, the matter was remanded back for proper verification and adjudication.
Key Issues
Whether the CIT(Exemption) erred in rejecting the registration application without proper verification and opportunity to the assessee, and if the notices issued were valid.
Sections Cited
12AB, 12A(1)(ac)(iii)
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 13.11.2024 passed by the CIT(Exemption), Ahmedabad.
The assessee has raised the following grounds of appeal :-
“1.1 The order passed by U/s. 12AB passed on 13.11.2024 by CIT(Exem), Ahmedabad rejecting the application for registration of the appellant trust u/s 12A(1)(ac)(iii) of the Act and cancelling the provisional registration is wholly illegal, unlawful and against the principles of natural justice. 2.1 The ld. CIT(Exem), has grievously erred in law and or on facts in not appreciating that the appellant could not file response to the notices issued by the respondent for sufficient cause. 3.1 The ld. CIT(Exem), has grievously erred in law and or on facts in rejecting the application for registration u/s 12AB of the Act holding that the genuineness of the activities of the trust and its consonance with the objects could not be verified. The CIT(E) has failed to taken into consideration the copy of audited annual accounts and other documents produced along with the application for registration.
Shri Ramji Mandir of Aatmaram Bavani Wadi vs. CIT(E) Page 2 of 3
3.2 That the in the facts and circumstances of the ld. CIT(Exem), ought not to have rejected the application for registration by ignoring the evidence on record with the application for registration.
It is, therefore, prayed that the rejection of the application for registration and cancellation of the provisional registration by the CIT(Exem), may kindly be deleted.”
The appellant trust is Charitable Trust constituted under the Trust Deed executed on 08.01.1953. It is also registered under the Gujarat Public Trust Act, 1950 on 08.01.1953. The application for provisional registration was made and provisional registration was granted on 28.06.2023 w.e.f. 01.04.2023 till A.Y. 2026- 27. Thereafter, application in Form 10AB was made on 28.06.2024 along with requisite details. The CIT(E) issued notices dated 27.08.2024 and 16.10.2024 requiring the appellant trust to furnish details. The CIT(E) passed order dated 13.11.2024 thereby rejecting the application for the reason that the appellant trust did not respond to the notices, so genuineness of the activities and its consonance with the objects of the trust could not be verified. The CIT(E) cancelled the provisional registration and rejected the registration u/s 12A(1)(ac)(iii) of the Act.
At the time of hearing, the Ld. AR submitted that notices issued by the CIT(Exemption) was not dated and the same was never received by the Appellant Trust. The Ld. AR further submitted that the CIT(E) has not given sufficient opportunity to the appellant trust to present the case despite filing all the requisite documents alongwith the application dated 28.06.2024. 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 two notices and the copies provided to us clearly do not mentions any dates as such. Besides this the CIT(E) rejected the application of the appellant trust only on the ground that appellant did not file the requisite documents and therefore genuineness of the trust was not established as per its object ignoring the fact that the appellant trust was has filed the application along with the details which were not at all Shri Ramji Mandir of Aatmaram Bavani Wadi vs. CIT(E) Page 3 of 3 considered by the CIT(E). 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.