NAV APOORV WELFARE DHARMIK AND PARMARTHIK TRUST,INDORE vs. CIT (EXEMPTION) BHOPAL, BHOPAL
Facts
The assessee, Nav Apoorv Welfare Dharmik and Parmarthik Trust, applied for registration under section 12AB of the Income-tax Act. The CIT(E) rejected the application, citing three opportunities given to the assessee to submit documents, which were not complied with.
Held
The Tribunal held that the assessee should be given one more opportunity for registration as the denial of such registration impacts its charitable purpose. The matter was remanded back to the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration without proper service of notices and whether principles of natural justice were followed.
Sections Cited
12A, 12AB, 11, 12
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order dated 04.09.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] bearing DIN: ITBA/EXM/F/EXM45/2024-25/1068329892(1) by which the assessee’s application for grant of registration u/s 12A(1)(ac)(iii) under the new provisions of section 12AB of Income-tax Act, 1961 [“the Act”] has been rejected, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
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Nav Apoorv Welfare Dharmik and Parmarthik Trust ITA No. 694/Ind/2024
Ld. AR for assessee drew us to impugned order to demonstrate that
the CIT(E) has rejected assessee’s application for the reason that three
opportunities were given to assessee vide letters dated 29.07.2024,
19.08.2024 & 28.08.2024 to submit certain details/documents but the
assessee has neither submitted the required documents nor sought
adjournment. Ld. AR firstly submitted that the letters referred by CIT(E)
were not served upon assessee by physical mode. Further, those notices
might have been served by email but they were given in a short span of time
and remained unattended because the assessee is a charitable trust being
managed by honorary office-bearers. Ld. AR next submitted that the
registration u/s 12A is an important issue for assessee because the
exemption u/s 11/12 is dependent upon such registration and in absence of
registration it would not be possible for assessee-trust to achieve its
charitable purpose. Ld. AR submitted that in the interest of justice one more
opportunity should be given to assessee by restoring this matter at the level
of CIT(E).
Ld. DR for revenue agrees with the prayer of Ld. AR but makes a
request to direct the assessee to represent its case before CIT(E) and do not
seek unnecessary adjournments.
Considering above submissions and also having regard to the
principle of natural justice and fair play, we deem it fit to remand this
matter back to the file of CIT(E) for adjudication afresh. The CIT(E) shall give
necessary opportunity of hearing to assessee and pass an appropriate order.
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Nav Apoorv Welfare Dharmik and Parmarthik Trust ITA No. 694/Ind/2024
The assessee is also directed to ensure participation in the hearings as may
be fixed by CIT(E) and do not seek unnecessary adjournments failing which
the CIT(E) shall be at liberty to pass appropriate order in accordance with
law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court immediately after conclusion of hearing and subsequently reduced in writing on the very same day.
Sd/- Sd/-
(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक/Dated : 25/03/2025
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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