KARHADE BRAHMAN SANGH,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

We note that in this case applicant-trust filed an application for registration u/s. 12A of the I.T. Act. Learned CIT(E) noted that on perusal of the memorandum of association, he issued notice to the assessee as to why its application should not be rejected on the ground that it was meant only for a particular community. Learned CIT(E) noted that show-cause was issued on 19.4.2017. However, since this issue was barred by limitation on 13.5.2017, he did not wait for the response and decided that the assessee does not deserve registration u/s. 12AA. Against this order, the assessee is in appeal before us.

We have heard both the counsel and perused the records. Learned counsel of the assessee submitted that learned CIT(E) has erred in appreciation memorandum of association of the assessee. He submitted that the assessee has also amended the said memorandum.

Per contra, learned Departmental Representative reiterated and submitted case law that the trust meant for a particular community should not be granted for registration.

Upon careful consideration, we not that learned CIT(E) has decided the issue against the assessee without receiving and considering the response to the show-cause notice. In this view of the matter, since learned counsel of the assessee’s plea is that the assessee can make appropriate submission to the show-cause notice of learned CIT(E). We deem it appropriate to remit the issue to the file of learned CIT(E). learned CIT(E) is directed to consider afresh after giving the assessee proper opportunity of being heard. Both the counsel fairly agreed to this proposition.

In the result, appeal filed by the assessee is allowed for statistical purposes. Order has been pronounced in the Court on 19.8.2019.