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Facts
The assessee, a Trust, applied for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The CIT(E) rejected both applications, citing the assessee's failure to furnish requisite details/explanation and establish the genuineness of its activities, despite multiple notices. The assessee subsequently filed an appeal before the Income Tax Appellate Tribunal.
Held
The Tribunal observed that the CIT(E) rejected the applications due to the assessee's failure to furnish substantial documents and establish the genuineness of its activities. Finding that the interests of justice would be served, the Tribunal remanded both the issue of 12A registration and 80G approval back to the CIT(E). The CIT(E) is directed to reconsider the applications afresh, taking into account all submissions and explanations provided by the assessee.
Key Issues
Whether the CIT(E) was justified in rejecting the assessee's applications for registration under Section 12A and approval under Section 80G due to non-submission of documents and failure to establish genuineness, and if the matter should be remanded for fresh consideration.
Sections Cited
Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, Section 80G(5)(iii) of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-Ms SUCHITRA KAMBLE
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
These two appeals have been filed by the assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, both dated 13.11.2024. Since the issues raised in these appeals are interconnected, we consider it appropriate to reproduce the grounds of appeal in for the purpose of adjudication.
2. The assessee has raised the following grounds of appeal:
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Ld. CIT(E) erred in law and on facts in denying registration to the assessee trust u/s.12A, without hearing the assessee.
The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise.
The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB under the provisions of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, on the ground that the assessee-trust failed to furnish the requisite details/explanation and to establish the genuineness of its activities.
Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld. CIT(E) rejected the application of the assessee on the ground that that the assessee-trust failed to furnish substantial documents. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld. CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.
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Since we have remanded the issue to the Ld. CIT(A) in regarding the rejection of application u/s.12A(1)(ac)(iii) of the Act, we also set-aside the issue for approval of registration u/s.80G(5)(iii) of the Act in for fresh adjudication.
In the result, both the appeals of the assessee are allowed for statistical purposes.