Loading judgment…
Facts
The assessee, Bolbala Charitable Trust, filed applications for approval under Section 12AB and Section 80G of the Income Tax Act. The CIT(E) rejected these applications, citing failure to furnish necessary documents and cancelling provisional registration. The assessee appealed these rejections.
Held
The Tribunal noted that the CIT(E)'s order was ex-parte and that the assessee may not have been properly served with notices or given sufficient opportunity to present their case. The Tribunal decided to set aside the CIT(E)'s order.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration under sections 12AB and 80G without providing sufficient opportunity to the assessee and properly considering the merits of the case.
Sections Cited
12AB, 80G, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No. 249&250/RJT/2025 (�नधा�रणवष� / Assessment Year: (NA) (Hybrid Hearing) Bolbala Charitable Trust Vs. CIT(Exemption) Bolbala Sankul, 3, Milpara Main Room No. 609, Floor No. 6, ayakar Road, Nr. Canal Road, Bhavan (Vejalpur), Prahalad nagar, Rajkot - 360002 Road, Ahmedabad - 380015 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAATB3989K (Appellant) (Respondent) Appellant by : Shri D. M. Rindani, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT(DR) Date of Hearing : 03/07/2025 Date of Pronouncement : 08/07/2025 आदेश / O R D E R PER DINESH MOHAN SINHA, JM:
Captioned two appeals filed by the assessee, are directed against the separate orders passed by the Learned Commissioner of Income Tax(Exemption), wherein the Ld. CIT(E) rejected the assessee’s application in Form 10AD for approval u/s. 12AB(I)(b)(ii) dated 21.11.2024 &the assessee application in Form 10AB for approval u/s. 80G(5) dated 22.11.2024 of the Act and also rejected provisional approval, and also cancel the provision of the assessee.
Since different issues are involved related to one assessee, these two appeals have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity
Grounds of appeal in (ITA No. 249/Rjt/2025) raised by the assessee are as follows:
The CIT (Exemption) erred in rejecting the application filed by the assessee in Form 10AB u/s 12AB of the Act on the ground that the Appellant-trust failed to furnish evidence in support of its application. The CIT (Exemption) further erred in cancelling the provisional registration granted to assessee in Form 10AC u/s 12A(1)(ac)(vi) of the Act. Relief claimed in appeal: It is prayed that the CIT (Exemption) be directed to grant registration u/s 12AB of the Act to the assessee-applicant considering the objects of the assessee-applicant alongwith merits of the case. The appellant craves leave to add, amend, alter or withdraw all or any ground of appeal at any time upto the date of hearing of the appeal.
Grounds of appeal in (ITA No. 250/Rjt/2025) raised by the assessee are as follows:
1)The Ld. CIT(E) erred in rejecting the application filed by the assessee in Form 10AB and thereby denying registration u/s. 80G(5) of the Act. 2) The Ld. CIT(E) erred in rejecting the application filed by the assessee in Form 10AB u/s. 80G(5) of the Act without going into merits. 3) Relief claimed in appeal: it is prayed that the CIT(E) be directed to0 grant registration u/sd. 80G(5) of the Act to the assessee considering the intent of the Act read with the objects of the assessee alongwith merits of the case. 4) The appellant craves leave to add, amend, alter or withdraw all or any ground of appeal at any time upto the date of hearing of the appeal.
Brief facts of the case this is an application for approval under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the I.T. Act, 1961 filed in Form no. 10AB electronically as per details given above Notices were issued to the applicant as enumerated in row no. 10 of table given at first page of order The assessee is granted provisional approval in Form 10AC under sub clause (vi) of clause (ac) of sub-section (1) of section 12A on 27.10.2021 from A.Y 2022-23. The procedure for fresh registration of an application made under sub-clause (11) or sub-clause (ii) or sub-clause (iv)
or sub-clause (v) [or item (B) of sub-clause (vi)] of clause (ac) of sub-section (1) of section 12A is governed by section 12AB(1)(b) of the act. Further, Rule 17A(1) of the Income Tax Rules prescribes the different forms to be filed for making application under various sub-clauses of clause (ac) of sub- section (1) of section 12A of the Income Tax Act for registration of a charitable or religious trust or institution and Rule 17A(2) of the Income Tax Rules lists the documents which shall be attached or submitted with the application made in Form No. 10AB. To begin with, in the present application filed in Form 10AB, the applicant was requested to submit certain details/documents vide notices dated 23.07.2024. However, in response to the said notice(s), the assessee vide its reply dated 07.08.2024 has sought an adjournment for one month. Thereafter, a notice was issued on 10.09.2024 to submit details/documents on or before 25.09.2024. However till now assessee has not furnished any reply/response and limitation in the present case is expiring on 30.11.2024. This office cannot wait beyond the period of limitation prescribed under the statute for deciding the application of the assessee under current proceedings. Hence, in the absence of requisite details, the present case is required to be decided based on material available on record and details/documents furnished along with Form 10AB. On perusal of such details, it is observed that in addition to the requisite details/documents called for vide notices issued by this office from time to time in the present application; the applicant has also failed to furnish following details which are essential to decide the application as per Income Tax Rule 17A(2).
Aggrieved by the impugned order both dated 21.11.2024 and 22.11.2024 of the Ld. CIT(E), the assessee is in appeal before us.
During the course of argument, the Ld. AR of the assessee submitted that the Ld. CIT(E) has issued notices on email-id, i.e., ‘vaniyahitesh111@gmail.com and ‘bvzalawadia@gmail.com’, which is belongs to the tax consultant of the assessee, tax consultant first notices responded and asked for adjournment and tax consultant did not file reply to second notice, the trust was unaware about the approval proceedings going on before the Ld. CIT(E).
On the other hand, the Ld. DR for the revenue relied on the order of the Ld. CIT(E), and not objected to the prayer of the Ld. AR.
We have carefully considered the rival contentions and perused the materials available on record. We note that the order of Ld. CIT(E) has ex- parte order. The Ld. CIT(E) has issued notice to the assessee. That the order of the Ld. CIT(E) does not talk about the service of notice upon the assessee for furnishing detail submission in support of the assessee. We further noted that it is older trust society seeking for the registration. Since, the Ld. AR prayed for an opportunity to appear and filed the documents in support of the application before the Ld. CIT(E), Ahmedabad. We are of the view that in the interest of justice, an opportunity should be given to the assessee to present his case before the Ld. CIT(E). We set aside the order of Ld. CIT(E) and remit the matter back to the file of Ld. CIT(E) for fresh adjudication on merit with the direction to the assessee to fully cooperate in the proceedings before the CIT(E) and furnish all requisite information and documents as may be required to facilitate timely adjudication.
That the assessee filed an application for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act, the issue is similar and the same is disposed off in above terms.
In the result, both the appeals filed by the assessee are allowed for statistical purpose.
Order pronounced in the open court on 08-07-2025