SUNITI CHATURBHUJ SOCIAL FOUNDATION,,HAJIPUR vs. CIT(EXEMPTION), PATNA
Facts
The assessee, a Charitable Trust, applied for registration under Section 12AB. Despite several opportunities and notices requesting comprehensive details and documents related to its charitable activities, FCRA registration, bank accounts, and financial statements, the assessee failed to comply. The Assessing Officer passed an ex-parte order dismissing the appeal.
Held
The Tribunal acknowledged that the assessee failed to prosecute its application before the CIT(Exemption) despite multiple opportunities. However, in the interest of justice, the Tribunal decided to set aside the ex-parte order passed by the CIT(Exemption).
Key Issues
Whether the rejection of the application for registration under Section 12AB due to non-prosecution by the assessee was justified, and if the Tribunal should remand the case for fresh adjudication.
Sections Cited
12AB, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Sanjay Awasthi
Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Exemption), Patna dated 21st August, 2024 passed for the assessment year
ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation 2024-25 on the application of the assessee filed in Form No. 10AB for registration under clause (iii) of second proviso to sub-section (5) of section 80G and 12AB of the Income Tax Act. In other words, the ld. CIT(Exemption) has rejected the application of the assessee for grant of registration under section 12AB on account of non- prosecution of the application.
Brief facts of the case are that the assessee is a Charitable Trust and engaged in various charitable activities. Notices were issued in respect of proceedings under section 80G(5)(iii) of the Act to the address of the assessee mentioned in the Form No. 10AB to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notices. In response to the notices, the assessee-Trust submitted partial information only. Thereafter notice dated 25.07.2024 was issued to the assessee as a final opportunity to submit the complete details of beneficiaries, details of registration under FCRA Act, 2010 along with statements of FCRA utilization bank accounts and documents relating to project wise accounts and report submitted to foreign donors agencies, copies of annual accounts and statements of bank accounts with bank ledgers, evidences in support of nature and source of receipts during FY 2020-21 t 2022-23. Evidences in support of nature and purpose of expenditure, etc., but there was no compliance to the notice.
The ld. CIT(Exemption) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed
ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation the written submission nor represented the case before the ld. CIT(Exemption). The ld. CIT(Exemption) passed the ex-parte order dated 21.08.2024 dismissing the appeal of the assessee.
Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred appeal before the Tribunal.
At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Exemption) for deciding it afresh. 6. The ld. D.R., on the other hand, submitted that the assessee should be more vigilant about its obligation towards prosecuting income tax proceedings. He argued to uphold the order passed by the ld. CIT(Exemption).
We have duly considered the rival contentions and gone through the record carefully. The impugned order is ex-parte order wherein application of the assessee for grant of registration under section 12AB have been rejected for want of prosecution. In the interest of justice, we deem it appropriate to set aside the order and remit the issue to the ld. CIT(Exemption) for fresh adjudication. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 29/04/2025. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 29th day of April, 2025 3
ITA No. 620/PAT/2024 (A.Y. 2024-2025) Suniti Chaturbhuj Social Foundation
Copies to :(1) Suniti Chaturbhuj Social Foundation, C/o. Gyanendra Priyadarshi, Andarkila, Hajipur, Vaishali-844101, Bihar (2) Commissioner of Income Tax (Exemption),Patna, 2nd Floor, C.R. Building, Birchand Patel Path, Patna-800001, Bihar (3) CIT - ; (4) The Departmental Representative; (5) Guard File TRUE COPY By order
Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.
