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Facts
The assessee, a trust established in March 2022, was granted provisional Section 12A registration. It subsequently applied for permanent Section 12A and Section 80G registrations, which were rejected by the CIT(E) based on the assumption that the trust benefited a particular religion, purportedly without proper examination of the facts.
Held
The Tribunal held that the CIT(E) failed to properly examine the facts and based the rejection solely on the name of the beneficiaries. Consequently, both appeals were remanded back to the CIT(E) for fresh consideration and adjudication in accordance with law, ensuring the assessee is granted a meaningful opportunity to be heard.
Key Issues
Whether the CIT(E) was justified in denying permanent Section 12A and Section 80G certifications to the assessee trust without a proper examination of facts, by merely inferring the trust's purpose from the name of its beneficiaries.
Sections Cited
12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav
O R D E R
Per Prakash Chand Yadav, JM :
The present appeals of the assessee are arising from the order of the learned Commissioner of Income-tax (Exemption) having DIN & Order No.ITBA/EXM/ F/EXM44/2023- 24/1053602678(1) & ITBA/EXM/F/EXM44/ 2023- 24/1055742070(1) dated 19thMarch, 2024 and 05th September, 2023, respectively.
-426/Coch/2024. Wellness Foundation.
The brief facts of the case are that the assessee is a trust came into existence on 3rdMarch, 2022. It has been granted provisional registration u/s.12A on 29thMarch, 2022 for Asst.Year 2022-2023 to 2024-2025. Thereafter the assessee vide application dated 29thSeptember, 2023 applied for permanent registration u/s.12A as well as u/s.80G. The learned CIT(E) heard the applications on 22ndDecember, 2023 and finally rejected the applications of the assessee vide order dated 19thMarch, 2024.
Aggrieved with the order of the CIT(E), the assessee has come up in appeal before us and assailed the order of ld.CIT(E).
The learned Departmental Representative appearing on behalf of the Revenue relied upon the orders of the authorities below.
We have heard the rival submissions and considered the material available on record. Perusal of the impugned order of the ld.CIT(E) would show that the ld.CIT(E) has based his conclusion simply on the basis of, name of the beneficiaries and held that the trust is formed for the benefit of a particular religion. In our opinion, the ld.CIT(E) has not examined the facts of the case properly. Therefore, we are of the firm opinion that the matters require fresh consideration before the ld.CIT(E). Hence, both the appeals are restored to the file of the ld.CIT(E) for deciding afresh in accordance with law. Needless
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on this 19th day of February, 2025.