SHREE RAJPUR JAIN SWETAMBER MURTIPUJAK SANGH,MEHSANA vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 1935/AHD/2024Status: DisposedITAT Ahmedabad30 January 2025Bench: SHRI T.R. SENTHIL KUMAR (Judicial Member), SHRI MAKARAND V. MAHADEOKAR (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the assessee should be given another opportunity of hearing by the CIT(E) to explain the discrepancy and then decide the case on merits for registration.

What were the facts?

The assessee-trust applied for registration under Section 12A but was denied by the CIT(E) due to a discrepancy in the return of income for AY 2024-25, where the registration details were wrongly mentioned. The assessee contended that an opportunity for correction should have been given.

What were the issues?

Whether the CIT(E) was justified in denying registration without providing an opportunity for the assessee to correct a clerical error in the return of income.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12A(1)(ac)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI T.R. SENTHIL KUMAR & SHRI MAKARAND V. MAHADEOKAR

For Appellant: Shri P.F. Jain, CA
Hearing: 28.01.2025Pronounced: 30.01.2025

आदेश/O R D E R

PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER :

1.

This appeal is filed by the assessee as against the order dated 09.11.2024 passed by the Ld. Commissioner of Income-tax (Exemption), Ahmedabad, denying registration u/s 12A of the Income-tax Act, 1961 (in short “the Act”).

2.

The assessee-trust has raised following grounds of appeal:- “(1) The above appeal is filed against the order of learned CIT(exemption), Ahmedabad rejecting the application of trust for registration as non- maintainable.

(2) On account of inadvertent mistake in filing ROI for A.Y. 2024- 25 by mentioning wrongly details of registration, an opportunity should have been granted to the assessee for necessary correction.

Shree Rajpur Jain Swetamber Murtipujak Sangh Vs. CIT(E) AY : - 2 (3) On the facts of the assessee, the application filed for registration u/s 12A ought to have been accepted.”

3.

The assessee is a trust which filed application for registration in Form 10AB under item (B) of Section 12A(1)(ac)(vi) of the Act. The assessee was called upon by Ld. CIT(E) to produce various details on 14.06.2024; in response, filed its reply enclosing various details. The assessee was denied registration u/s 12A(1)(ac)(vi) of the Act on the ground that the assessee in its return of income filed for the Assessment Year 2024-25 wrongly mentioned the registration as approved u/s 12A and the date of registration of the Trust as 23.04.1953. Therefore, the Ld. CIT(E) denied registration to the assessee-trust vide the impugned order dated 09.11.2024.

4.

Ld. Counsel, appearing for the assessee, submitted though the assessee was heard on 14.06.2024 and the return of income for the AY 2024-25 was filed on 19.09.2024 with wrong mentioning of the provisions, the Ld. CIT(E) ought to have given an opportunity of hearing to the assessee-trust to explain the discrepancy made in the return of income filed by the assessee-trust, that too when he passed this impugned order on 09.11.2024. Therefore, the impugned order is required to be set aside to the file of the Ld. CIT(E) to give proper opportunity of hearing to the assessee-trust and decide the case on merits for registration of trust.

5.

The Ld. CIT-DR, appearing for the Revenue, has no objection to set aside the matter back to the file of the Ld. CIT(E) to decide the case by giving one more opportunity.

Shree Rajpur Jain Swetamber Murtipujak Sangh Vs. CIT(E) AY : - 3

6.

Recording the above submissions of the rival parties, the impugned order passed by the Ld. CIT(E) is hereby set aside with the direction to the Ld. CIT(E) to provide the assessee-trust one more opportunity of hearing and decide the registration in accordance with the law.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open Court on 30.01.2025 at Ahmedabad.

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