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Facts
The assessee, a registered Trust, applied for renewal of registration under Section 12A(1)(ac) as per Section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application, citing non-compliance with notices and failure to furnish details by the assessee.
Held
The Tribunal observed that the CIT(Exemption)'s order lacked details regarding the issuance and service of notices. Consequently, the Tribunal remanded the matter back to the CIT(Exemption) for proper verification of documents and adjudication as per the Income Tax Act, ensuring the assessee is given a proper opportunity of hearing.
Key Issues
Whether the CIT(Exemption) erred in rejecting the application for renewal of registration under Section 12A(1)(ac) without providing proper opportunity of hearing and without clear details regarding compliance by the assessee.
Sections Cited
12AB(1)(b)(ii), 12A(1)(ac), 12AB
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 Assessee against order dated 22.10.2024 passed by the CIT(Exemption), Ahmedabad.
The assessee has raised the following grounds of appeal :-
“1. The order u/s.12AB(1)((b)(ii) of the Act is bad in law
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 existing provisional registration.”
The appellant/assessee is a Trust registered with the Office of the Charity Commissioner and was previously registered under Section 12A(1)(ac) of the Income Tax Act, 1961. In accordance with the provisions of Section 12AB of the Act, the appellant/assessee applied for renewal of registration under Section 12A(1)(ac) of the Satyanarayan Park Owners Assn. Rajkot vs. CIT(E) Page 2 of 3 Act vide online application in Form 10AB and the same was rejected by the CIT(Exemption), Ahmedabad vide order dated 22.10.2024 on the ground that the assessee has not complied the notices and has not furnished the details.
At the time of hearing, the Ld. AR submitted that the CIT(Exemption) has not given opportunity to present the relevant documents within the stipulated time and hence 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(Exemaption).
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 not mentioned as to when the notices were issued and has also not given the details in order dated 22.10.2024 as to whether the services of the notices were done to the assessee or not. Thus, the matter is remanded back to the file of the CIT(Exemption) for proper verification of the details filed by the assessee 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 4th March, 2025.