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Facts
The assessee filed an application for registration under section 12AB of the Income Tax Act. The CIT(E) rejected the application on the grounds that the assessee's constitution was not duly approved by the competent authority (Gujarat State Waqf Board). The assessee's revised constitution was pending approval.
Held
The Tribunal noted that the order of the CIT(E) was ex-parte, despite a notice being issued. The assessee had not submitted all required documents. Therefore, the Tribunal set aside the order of the CIT(E) and remitted the matter back for fresh adjudication.
Key Issues
Whether the rejection of registration application by CIT(E) solely on the ground of pending approval of the constitution by the Waqf Board is justified.
Sections Cited
80G(5)(iii), 12AB, 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI. & DIESH MOHAN SINHA
आदेश / O R D E R PER, DINESH MOHAN SINHA, JM:
Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax(Exemption), wherein the Ld. CIT(E) rejected the assessee’s application in Form 10AB for approval u/s. 80G(5)(iii) of the Act and also rejected provisional approval, and also cancel the provision of the assessee.
Grounds of appeal raised by the assessee are as followed:
1) The Ld. CIT-Exemption, Ahmedabad has erred on facts and in law in rejecting the application seeking approval under section 12AB of the Income Tax Act on the ground that the appellant does not have a valid Constitution containing objects which is duly approved by the competent authority (Gujarat State Waqf Board, Gandhinagar).
Brief facts of the case that the appellant filed application in Form No.10AB u/s 12A(1) (ac)(iii) of the Act on 28.09.2023 seeking registration under section 12AB of the Income Tax Act, 1961. The appellant was called upon to furnish certain details / documents vide notice dated 20.11.2023 and 18.12.2023. In response to the said notice, the applicant vide its reply dated 02.01.2024 has submitted certain details. Thereafter, the appellant was in receipt of the show cause notice dated 14.03.2024 which was duly responded on 26.03.2024. The Ld. CIT (Exemption) rejected the application on the ground that the appellant does not have a valid Constitution containing objects which is duly approved by the competent authority (Gujarat State Waqf Board, Gandhinagar).
That the assessee has filed an appeal to challenge the validity of order of the Ld. CIT(E) before us on 29.03.2024
During the course of hearing, Ld. AR submitted that the fact is that revised constitution of the appellant is pending for approval from Gujarat State Waqf Board, Gandhinagar.
On the contrary, the Ld.DR for the revenue relied on the judgment of Ld. CIT(E) and not objected to the prayer of the Ld. AR.
We have heard both the parties and perused the material available on record. We noted that the order of Ld. CIT(E) has ex- parte order and before passing the order the Ld. CIT(E) has issued noticed to the assessee. We note that the assessee has not submitted entire documents and evidences for registration has asked by the Ld. CIT(A), therefore, we are of the view that one more opportunity given to the assessee to plead his case before the Ld. CIT(E), Ahmedabad. We set aside the order of Ld. CIT(E) and remit the Page | 2 matter back to the file of Ld. CIT(E) for fresh adjudication on merit after giving due opportunity to the assessee of being heard.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 30/06/2025.