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Facts
The assessee's appeal stems from an order by the learned CIT(E) rejecting their application. The assessee claimed they could furnish necessary details/evidences if given another opportunity.
Held
The Tribunal noted the lenient view taken towards small trusts and, in the interest of natural justice, set aside the CIT(E)'s order. The CIT(E) is directed to adjudicate the matter on merits after providing a reasonable opportunity to the assessee.
Key Issues
Whether the assessee should be granted an opportunity to furnish details/evidences before the CIT(E) for their application was rejected due to non-compliance.
Sections Cited
12A(1)(ac), the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 04/03/2025 Date of Order – 21/03/2025
O R D E R PER K.M. ROY, A.M.
Captioned appeal by the assessee is emanating from the impugned order dated 19/03/2024, passed by the learned Commissioner of Income Tax (Exemption), Pune, , [“learned CIT(E)”], in Form no.10AD, rejecting the application filed by the assessee in Form no.10AB(iii) of section 12A(1)(ac) of the Income Tax Act, 1961 ("the Act").
The rejection was done by the learned CIT(E) vide impugned order dated 19/03/2024. It appears that there was no compliance to the statutory notices to furnish certain details / evidences. The learned Authorised Representative for the assessee submitted that he will furnish the desired details / evidences if given one more opportunity to substantiate its cases
2 Hematology Oncology Society ITA no.35/Nag./2025 before the learned CIT(E). However, he failed to adduce any evidence / documents before us. It is pertinent to mention here that this Bench was always taken a sympathetic and lenient view that these types of small Trusts must be afforded full opportunity in the interest of natural justice to establish their cases. Accordingly, we set aside the impugned order passed by the learned CIT(E) and direct him to adjudicate the matter on merits and in accordance with law after providing reasonable opportunity of being heard to the assessee.
In the result, assessee’s appeal is allowed for statistical purposes. Order pronounced in the open Court on 21/03/2025