DAYAL EDUCATIONAL WELFARE SOCIETY,KANNAUJ vs. COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW

The facts of the case, in brief, are that an application for registration of the trust u/s 12AA of the I.T. Act was filed by the assessee on 03/04/2024 in Form No.10AB under Rule 17A of the I.T. Rules 1962. The learned CIT (Exemptions) issued a notice on 14/08/2024 to the assessee to submit a note on activities conducted since inception/during last three years and a note specifying the main area of charitable/religious activities and a projection/plan for the main Assessment Year:N.A. 2 charitable/religious activities to be undertaken in the next two years. In response to the said notice, the assessee filed part reply which was not accepted by the learned CIT (Exemptions). The learned CIT (Exemptions) rejected the application of the assessee for registration u/s 12AA of the Act on the ground that the assessee has failed to file documentary evidences to enable him to satisfy himself about the genuineness & commencement of its charitable activities. Aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal.

At the time of hearing before us, there was no representation from the assessee’s side. Learned CIT (D.R.) was heard and the materials available on record were perused. We noted from the order of learned CIT (Exemptions) that the learned CIT (Exemptions) rejected the assessee’s application u/s 12AA of the Act without providing reasonable opportunity for providing the details called for by the learned CIT (Exemptions) and therefore, the matter should go back to him for a fresh decision. Learned CIT (D.R.) supported the order of learned CIT Exemptions, Lucknow. In view of the foregoing and in the specific facts and circumstances of the present appeals before us; we set aside the impugned order of learned CIT (Exemptions) and restore the matter regarding the assessee’s applications u/s 12AA of the Act; back to his file with the direction to consider the application of the assessee for registration u/s 12AA of the Act afresh, and to pass de novo order after giving reasonable opportunity of being heard to the assessee.