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Facts
The assessee, a Charitable Trust, applied for final registration under Form 10AB, but the CIT(Exemption) rejected it due to the assessee's failure to respond to hearing and show cause notices. The assessee explained that the Managing Trustee's daughter's marriage led to the oversight and an adjournment request was filed on the Income Tax portal.
Held
The Tribunal found that the CIT(Exemption) rejected the application solely based on non-compliance. Considering the assessee's reasons and in the interest of justice, the Tribunal remitted the case back to the CIT(Exemption) to decide afresh after providing a reasonable opportunity of hearing to the assessee and allowing submission of necessary documents.
Key Issues
The primary issue was the validity of the CIT(Exemption)'s rejection of the trust's final registration application without adequately considering the assessee's explanation for non-compliance with notices, and whether sufficient opportunity of being heard was provided.
Sections Cited
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Income Tax Appellate Tribunal, COCHIN BENCH: COCHIN
Before: SHRI INTURI RAMA RAO & SHRI KESHAV DUBEY
Assessment Year: 2023-24 Prabhatham Charitable Trust Kulappully Shoranur CIT (Exemption) Vs. Kerala 679 122 Cochin PAN NO : AADTP9349N APPELLANT RESPONDENT Appellant by : None Respondent by : Shri Sanjit Kumar Das, D.R. Date of Hearing : 19.02.2025 Date of Pronouncement : 24.04.2025 O R D E R
PER KESHAV DUBEY, JUDICIAL MEMBER:
This appeal at the instance of the assessee is directed against the order of the ld. CIT(Exemption), Kochi dated 7.2.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2023-24/1060586719(1) rejecting the application for registration/approval filed by the assessee.
The assessee has raised the following grounds of appeal:
Brief facts of the case are that the assessee is a Charitable Trust. The Trust deed is registered before the Sub Registrar Office, Ottapalam on 15.11.2018. The assessee was granted a provisional Registration with No. AADTP9349NE20206. The application for final registration has been filed in Form No. 10AB on 28/09/2023, i.e. well within the permitted time, i.e. six months prior to the expiry of the period of provisional registration. The ld. CIT (Exemption) accordingly issued hearing notice dated 04/01/2024 and Show cause notice dated 16/01/2024. As contended, the Managing Trustee was busy with his personal matter as his daughter's marriage was scheduled to be held on 29/01/2024 and due to this, the notice dated 04/01/2024 missed his attention. Further, the assessee in response to the show cause notice dated 16/01/2024 uploaded an adjournment request in the Income Tax portal. However, the Ld. CIT (Exemption) rejected the application for registration vide Order dated 07/02/2024 stating that the applicant has not filed any reply/documents in response to hearing notice dated 04/01/2024 or show cause notice dated 16/01/2024.
Aggrieved by the order of ld. CIT(E) rejecting the application, the assessee is in appeal before us.
None appeared at the assessee’s behest. We accordingly proceed with ex-parte.
Before us, the ld. D.R. vehemently submitted that in spite of providing two opportunities by the ld.CIT(E), the assessee did not file any reply/document in response to hearing notice, therefore, ld. CIT(E) Kochi has rightly rejected the application filed in Form 10AB.
We have heard the rival submissions and perused the materials available on record. On going through the annexure attached to Form No.10AD, we take a note that the ld. CIT(E) Kochi has rejected the application for approval on the sole ground that the assessee has not filed any reply/documents in response to hearing notice dated 4.1.2024 and show cause notice dated 16.1.2024. Assessee in his written statement of facts filed before us has submitted that due to marriage of the daughter of managing trustee which was held on 29.1.2024, the assessee could not represent the case before the ld. CIT(E). Further, the assessee in his written statement of facts submitted that in response to show cause notice dated 16/01/2024, the assessee uploaded the adjournment request in the income tax portal. This Being so, considering the grounds of appeal as well as in the interest of justice and fair play, we remit back the entire issues in dispute to the file of ld. CIT(E), Kochi to decide afresh in accordance with the law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to file necessary Information/records/accounts/evidence as may be required by the ld. CIT(E) for granting the registration. We make it clear that in case Prabhatham Charitable Trust, Shoranur Page 4 of 4 of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly.
In the result, appeal filed by the assessee is partly allowed for statistical purposes.