SEERVI SAMAJ BILWAS TRUST,BANGALORE vs. INCOME TAX OFFICER WARD-3, BANGALORE

This is an appeal filed by the assessee-trust directed against the order of the learned Commissioner of Income-tax (Exemptions), Bengaluru, [CIT(Exemptions)] dated 27/07/2017 rejecting registration u/s 12AA of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short].

Brief facts of the case are that the assessee-trust filed an application in the prescribed form for registration u/s 12AA of the Act on 16/01/2017. The ld.CIT(Exemptions) had issued a letter dated 03/07/2017 calling for certain details. It is stated that the assessee- trust had not complied with the said letter. Therefore, the ld.CIT(Exemptions) felt that it was not possible to satisfy himself about the objects and genuineness of the trust. Therefore, declined registration u/s 12AA vide impugned order.

Learned AR of the assessee contended that the assessee-trust has not received the letter dated 03/07/2017 issued by the ld.CIT(Exemptions) and therefore, could not be complied with. In support of this contention, affidavit duly sworn by the President of the assessee-trust was filed before us, which reads as under:

We heard rival submissions and perused the material on record. The only issue in the present appeal is whether the ld.CIT(Exemptions) was justified in denying registration u/s 12AA of the Act. The solitary ground on which the ld.CIT(Exemptions) denied registration is that the assessee-trust had not complied with the letter issued by him calling for certain details. In absence of such details, the ld.CIT(Exemptions) drew adverse inference and denied registration. Before us, the assessee-trust made out a case by filing an affidavit as to how it was prevented from complying with the notice issued by the ld.CIT(Exemptions). The contents of the affidavit have not been rebutted by the ld.CIT(DR). In the circumstances, we deem it fit to restore the matter to the file of the ld.CIT(Exemptions).