SWATANTRATA SENANI SHAHEED CH. RANJEET SINGH VIADYA TRUST,PANCHKULA vs. COMMISSIONER OF INCOME TAX(EXEMPTIONS), CHANDIGARH

The present two appeals are directed at the instance of the assessee against the orders of ld. Commissioner of Income Tax (Exemptions) [in short ‘the CIT (Exemptions)’] dated 23.01.2025 vide which ld. CIT (Exemptions) has rejected the application of the assessee for grant of registration u/s 12AA as well as u/s 80G sub-section (5)(iii) of the Income Tax Act.

The Trustee of the Trust appeared in person and submitted that assessee Trust was enacted in February,2024. It was granted provisional registration u/s 12 in March,2024. It has applied for regular registration in July, 2024 and such application of the assessee has been dismissed ex-parte by the ld. CIT (Exemptions) without adjudication on merit. Since application for grant of registration u/s 12A(1)(ac)(iii) has been rejected, consequently registration u/s 80G(5) has also been rejected.

With the assistance of ld. Representative, we have gone through the record carefully. Since ld. CIT (Exemptions) did not adjudicate the issue on merit, rather dismissed the applications on the ground that assessee did not respond to the notices issued by the ld. CIT (Exemptions) and failed to submit requisite details, however, considering the facts and circumstances, we deem it appropriate to provide one more chance to the assessee to prosecute its case. The impugned orders of the ld. CIT (Exemptions) are set aside. Both the applications are restored to the ld. CIT (Exemptions) to & 421/CHD/2025 A.Y.2025-26 3 re-adjudicate on merit after providing due opportunity of hearing to the assessee.