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Facts
The Assessee is a Public Charitable Trust whose application for renewal of exemption under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 was rejected by the CIT(Exemption). The Assessee contended that the rejection was done without considering their submissions filed on 21.08.2024. The Assessee provided proof of submission and prayed for an opportunity to be heard.
Held
The Tribunal held that for the interests of justice, the matter should be remanded to the CIT(E) to reconsider the application afresh, taking into account the submissions filed by the assessee. The appeals were allowed for statistical purposes.
Key Issues
Whether the rejection of the renewal application for exemption by the CIT(E) was justified without considering the assessee's submissions, and if a remand is appropriate for a fresh consideration.
Sections Cited
12A(1)(ac)(iii), 2(15)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: DR.BRR KUMAR&
ITA Nos.1901,1902,1910 & 1906/Ahd/2024 Asst.Year –NA - 2– Date of Hearing 13.01.2025 Date of Pronouncement 17.01.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: These appeals have been filed by the different Assessee’s against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 02.09.2024 & 03.09.2024.Since the issue involved in all the four appeals are common, we extract the grounds of appeal raised in for the purpose of adjudication.
The Assessee has taken the following grounds of appeal:-
1. CIT(Exemption) Ahmedabad erred in law and on facts in renewal application for approval under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 on ground of non-compliance.
2. The appellant says and submit that provisional approval u/s.12A(1) of the Act was granted to the Trust on 07.04.2022 to AY 2024-25. In response to filed renewal application in Form 10AB Online, a questionnaire dated 03.07.2024 was issued by the office of CIT (Exemption). The appellant sought adjournment. Again notice dated 06.08.2024 was issued fixing date was issued fixing the date 21.08.2024 requiring certain information. The appellant submitted all the required information vide letter dated 21.08.2024. The learned CIT(Exemption) has without considering the submission filed on 21.08.2024, rejected the application for renewal of Exemption U/s.12A(1)(ac)(iii) of the IT Act on ground of non compliance vide order dated dated 02.09.2024. 3. The facts of the case are that the assessee is a Public Charitable Trust and the activities of the trust are charitable within the meaning of section 2(15) of the I.T Act. Notices were issued from time to time requesting to furnish details/documents. The Ld. CIT(E) rejected the application of the assessee on the grounds that the assessee neither filed any submission nor sought any adjournment. ,1902,1910 & 1906/Ahd/2024 Asst.Year –NA - 3– 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
5. At the outset, the Ld. Counsel for the assessee submitted that the Ld.CIT(E) has rejected the application for renewal of Exemption u/s. 12A(1) (ac) (iii) of the IT Act of the assessee without considering the submissions which have already been filed on 21.08.2024. 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). Rebutting the arguments of the Ld. DR, the Counsel for the assessee has produced the acknowledgement copy of the submissions made 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 appeals of the assessee are allowed for statistical purposes.