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Facts
The assessee, Shahi Nobility Trust, appealed against the Commissioner of Income-tax (Exemption)'s order dated March 15, 2023, denying its registration under Section 12AA of the Income-tax Act, 1961. The CIT(E) based the denial on observations that the assessee spent funds on construction/renovation of masjids, religious charity, and pilgrimage, without a detailed examination of the trust's main objects.
Held
The Tribunal held that the CIT(E) failed to appreciate the assessee's objects in proper perspective and did not examine the main objects of the assessee. Consequently, the matter is remitted back to the CIT(E) for fresh adjudication in accordance with law, after granting the assessee a sufficient opportunity of being heard.
Key Issues
The key issue was whether the CIT(E) was justified in denying registration under Section 12AA without adequately examining the assessee's primary objects.
Sections Cited
12AA
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav
Asst.Year 2020-2021 Shahi Nobility Trust The Commissioner of Income- Padiyoor PO tax (Exemption) v. Thrissur – 680 695 Kochi. PAN : AAOTS1939A. (Appellant) (Respondent) Appellant by : --- None --- Respondent by : Sri.Sanjit Kumar Das, CIT-DR Date of Pronouncement : 19.02.2025 Date of Hearing : 21.01.2025. O R D E R
Per Prakash Chand Yadav, JM :
The present appeal of the assessee is arising from the order of the learned Commissioner of Income-tax (Exemption) dated 15th March, 2023 and relates to the denial of registration u/s.12AA of the Income-tax Act, 1961, having DIN & Order No.ITBA/ASK/F/73/2022-23/1050783788(1).
At the outset, we would like to observe that despite proper service of notice no one appeared on behalf of the assessee. Therefore, we are deciding this appeal on the basis of material available on record.
The learned Departmental Representative relied upon the orders of the authorities below.
. Shahi Nobility Trust.
We have heard the learned Departmental Representative and perused the material available on record. We observe that the ld.CIT(E) has not appreciated the objects of the assessee in proper perspective. The ld.CIT(E) has simply gone away by observing that the assessee has spent huge money for construction of masjid, renovation of masjids, religious charity, religious pilgrimage, etc. The ld.CIT(E) has not examined the main objects of the assessee, which are quoted by the ld.CIT(E) in his order. Therefore, in the interest of justice, we remit the matter back to the file of the ld.CIT(E) for fresh adjudication in accordance with law. Needless to say, the ld.CIT(E) would grant sufficient opportunity of being heard to the assessee before passing any order.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 19th day of February, 2025.