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Facts
The assessee, Halima Adamji Medical and Education Charitable Trust, appealed an order by the CIT(E) rejecting their application for registration under section 12A of the Income-tax Act. The assessee argued that the order was passed without a proper show cause notice and that the submitted documents were not considered.
Held
The Tribunal found that the CIT(E) passed the order without effectively hearing the appellant, as only one notice was issued and the submitted documents were not considered. Therefore, the Tribunal set aside the order and restored the matter to the CIT(E) for a fresh decision.
Key Issues
Whether the CIT(E) erred in rejecting the application for registration under section 12A without proper notice and consideration of submitted documents.
Sections Cited
250 of the Income-tax Act, 1961, 12A of the Act, 12A (1) (ac)(vi) of the I.T Act 1961, 143(1) of the Act
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Before: SHRI SANJAY GARG & SHRI BIJAYANANDA PRUSETH
आदेश / O R D E R
PER BIJAYANANDA PRUSETH, AM:
This appeal by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’), dated 29.05.2025 by the Commissioner of Income-tax (Exemption), Ahmedabad [in short, ‘CIT(E)’] for the Assessment Year (AY) 2025-26, rejecting the application for registration made by the assessee u/s 12A of the Act.
Grounds of appeal
raised by the assessee are as under:
1. On the facts and circumstances of the case as well as law on the subject, the Id. Commissioner of Income Tax (Exemption) has erred in rejecting the application for registration made by assessee u/s 12A of the I T Act 1961 although assessee trust was not earlier registered u/s 12A of the IT Act 1961.
A.Y 25-26 Halima Adamji Medical & Education Charitable Trust 2. On the facts and circumstances of the case as well as law on the subject, the Id. Commissioner of Income Tax (Exemption) has erred in not granting permanent registration to the assessee trust by rejecting the application filed in Form 10AB u/s 12A (1) (ac)(vi) of the I.T Act 1961.
3. It is therefore prayed that order of Id. Commissioner of Income-tax (Exemptions) rejecting application of assessee may please be quashed.
4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.
At the outset, the Ld. AR of the assessee submitted that the Ld. CIT(E) has passed the order without issuing any show cause notice. He submitted that only one notice was issued by Ld. CIT(E) in response to which the assessee had filed reply vide letter dated 14.04.2025 and had also enclosed trust deed of the assessee along with its English translation of the relevant portion, audited income and expenditure account, balance-sheet for AY 2024-25 and intimation u/s 143(1) of the Act showing that exemption claimed u/s 12 was disallowed. He submitted that the Ld.CIT(E) had ignored the submission of the assessee and passed the impugned order. He, therefore, requested that one more opportunity may be given to plead the case on merit.
On the other hand, Ld. CIT-DR supported the order of Ld.CIT(E). He would, however, have no objection if the matter is restored to the file of Ld. CIT(E) for fresh consideration.
We have heard both the parties and perused the materials available on record. We find that the Ld. CIT(E) issued only one notice on 14.02.2025. In response, the appellant had filed reply dated 14.04.2025 which is enclosed at pages 1 to 7 of the paper book. The appellant had also submitted intimation u/s 143(1) of the Act, balance-sheet, profit and loss account and trust deed which had not been considered A.Y 25-26 Halima Adamji Medical & Education Charitable Trust by the Ld. CIT(E). It is, thus, clear that the order has been passed without hearing the appellant effectively. Therefore, in the interest of justice, we deem it proper to set aside the order of Ld.CIT(E) and restore the matter back to the file of Ld.CIT(E) for fresh decision after considering the details submitted by the appellant and after calling for further details which may be required for deciding the issue. The appellant is directed to file necessary details as and when called for by the Ld. CIT(E). For statistical purposes, the appeal of the appellant is treated as allowed.