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Facts
The assessee filed appeals against the orders of the CIT(A) rejecting their applications for registration under Section 12A and approval under Section 80G due to defects in trust deed and other documents. The assessee contended that they were not given adequate opportunity to rectify the defects.
Held
The Tribunal held that in the interest of justice and natural justice, the matters require reconsideration. The impugned orders were set aside, and the matters were restored to the CIT(A) to grant the assessee a reasonable opportunity to cure the defects and submit supporting documents.
Key Issues
Whether the assessee was provided adequate opportunity to cure defects before rejection of Form 10AB applications for registration and approval.
Sections Cited
Section 12A of the Income-tax Act, 1961, Section 80G of the Act
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO & SHRI SONJOY SARMA
BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI SONJOY SARMA, JUDICIAL MEMBER & 154/COCH/2025 Assessment Years: 2022-23 Trauma Care and Road Accident Center In Kollam……..…..….……….Appellant Regional Transport Office, Civil Station Tec, Kerala – 691013. [PAN:AAGAT7702D] vs. ITO, Ward-2, Kollam…………..……….....................……........……...…..…..Respondent Appearances by: Shri K P Pradeep, Adv., appeared on behalf of the assessee. Smt. Veni Raj CIT-DR, appeared on behalf of the Revenue. Date of concluding the hearing: June10, 2025 Date of pronouncing the order: August 12, 2025 ORDER Per Sonjoy Sarma, Judicial Member: These two appeals filed by the assessee are directed against the separate orders of the Commissioner of Income-tax (Exemption), Kochi [in short CIT(A)] both dated 20.12.2024. Since the appeals pertain to the same assessee, therefore, they were heard together and are being disposed of by this common order.
Form 10AB filed by the assessee seeking registration under Section 12A of the Income-tax Act, 1961. relates to the rejection of Form 10AB filed for approval under Section 80G of the Act. In both cases, the Ld. CIT (Exemptions), Kochi, rejected the applications on the ground of certain defects in the trust deed and other documents.
&154/COCH/2025 Trauma Care and Road Accident Center In Kollam
The assessee has challenged both orders before this Tribunal, contending that the rejection was bad in law, as the assessee was not provided adequate opportunity to cure the defects or to submit amended documents in support of its claim. It was submitted that the trust had undertaken steps for amendment under the Travencore Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 and that a reasonable opportunity ought to have been granted by the CIT (Exemptions).
During the course of hearing, the Ld. Departmental Representative did not object to the prayer for remand made by the assessee.
Having heard both parties and considering the totality of facts and circumstances, we find that, in the interest of justice and in adherence to principles of natural justice, both matters require reconsideration. Accordingly, we set aside the impugned orders passed by the Ld. CIT (Exemptions), Kochi, and restore both matters to his file with a direction to grant reasonable opportunity to the assessee to cure the defects and submit supporting documents, including amended trust deed, if any. The Ld. CIT (Exemptions) shall then pass a reasoned order in accordance with law after due consideration of the submissions and materials filed by the assessee.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.