KHAJAN SITA PARMAKTHIK TRUST,INDORE vs. CIT EXEMPTION , BHOPAL

Feeling aggrieved by order bearing DIN: ITBA/EXM/F/EXM45/2024- 25/1071559359(1) dated 25.12.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final registration u/s 12AB of Income-tax Act, 1961 has been rejected and the provisional registration u/s 12AB granted earlier has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).

Ld. AR for assessee carried us to Para 3 & 4 of the impugned order and demonstrated that the Ld. CIT(E) has rejected assessee’s application for the reasons that (i) no details had been provided in respect of charitable activities done by assessee during last 3 financial years with supporting evidences, and (ii) the assessee has not filed bank accounts of last 3 financial years required for verification of application of income. Ld. AR next submitted that the assessee has filed an Application under Rule 29 of Income-tax (Appellate Tribunal) Rules, 1963 accompanied by a separate paper-book containing pages from 62 to 87 containing the evidences required by Ld. CIT(E). Therefore, in the interest of justice one more opportunity may be given to assessee represent its case before CIT(E).

Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(E) and do not seek unnecessary adjournments.

Considering above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of CIT(E), we remand this matter back to the file of CIT(E) for adjudication afresh after examining of assessee’s evidences. We, however, make it clear that CIT(E) may raise any other query also as considered necessary. The CIT(E) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by Page 2 of 3

Resultantly, this appeal is allowed for statistical purpose.