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Facts
The assessee, a charitable trust, sought permanent registration under Section 12AB/12A after obtaining provisional registration. The CIT(E) rejected the application due to the assessee's non-compliance with notices for clarifications regarding its activities.
Held
The Tribunal, noting the rejection due to lack of response, applied principles of natural justice. It set aside the CIT(E)'s order and directed a de-novo consideration of the application, granting the assessee another opportunity to present its case and evidence.
Key Issues
Whether the CIT(E) was justified in rejecting the application for permanent registration due to non-compliance, and if principles of natural justice necessitate providing a further opportunity for hearing.
Sections Cited
12AB, 12A
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Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई की तारीख/Date of Hearing 05.03.2025 घोषणा की तारीख/Date of Pronouncement 06.03.2025 ORDER PER BENCH: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Exemptions)(CIT(E)), Bangalore passed u/sec12AB(I)(b)(ii) of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(E) rejecting the application filed fror registration u/sec12AB of the Act.
2. The brief facts of the case are that, the assessee is a charitable trust and is undertaking charitable activities as per the trust deed dated 30-08-2018. The assesse was Shree Geeta Dharam Mandal . granted provisional registration under section 12AB of the Act in Form.no.10AC on 27-05-2021. Subsequently, as per the amended, provisions of section 12AB of the Act, The assessee for the purpose of permanent registration has uploaded e-application in Form. No.10AB on 15-03-2024 and since there was no proper compliance to the notices of hearing, the same was rejected by the CIT(E). Aggrieved by the CIT(E) order, the assessee has filed before the Honble Tribunal.
We have heard the Ld.DR submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for permanent registration under section 12A of the Act, whereas the CIT(E) in course of hearing proceedings has issued e-notice on the assessee through ITBA portal for certain clarifications and additional information to verify the genuineness of the activities of the trust. Since there was no proper response to the notices in spite of providing sufficient opportunities to the assessee, the CIT(E) has rejected the application. Hence we considering, the facts, circumstances and the principles of natural justice shall provide with one more opportunity of hearing to the assesse to substantiate the case along with evidences and information. Accordingly, we set aside the impugned order and direct the CIT(E) to denovo consider the application as per the law and we
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 06.03.2025.